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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02864
Pioneer Bond Fund
(Exact name of registrant as specified in charter)
60 State Street, Boston, MA 02109
(Address of principal executive offices) (ZIP code)
Dorothy E. Bourassa, Pioneer Investment Management, Inc.,
60 State Street, Boston, MA 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 742-7825
Date of fiscal year end: June 30
Date of reporting period: July 1, 2006 through June 30, 2007
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO SHAREOWNERS.
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PIONEER
-------
BOND
FUND
PIOBX
Ticker Symbol
Annual
Report
6/30/07
[LOGO] PIONEER
Investments(R)
Table of Contents
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Letter to Shareowners 2
Portfolio Management Discussion 4
Portfolio Summary 8
Prices and Distributions 9
Performance Update 10
Comparing Ongoing Fund Expenses 15
Schedule of Investments 17
Financial Statements 30
Notes to Financial Statements 40
Report of Independent Registered Public Accounting Firm 49
Trustees, Officers and Service Providers 50
President's
Dear Shareowner,
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Staying diversified and keeping your portfolio invested in the markets are two
general investment principles that have served investors well over time. Those
were particularly useful guides during the past year, as U.S. and global stock
and bond markets grew strongly during the period.
In recent months, U.S. equity markets proved resilient in the face of a slowing
economy. The Standard & Poor's 500 Stock Index set a record high in late May.
The Dow Jones Industrial Average returned 9%, building on a five-year bull
market. International developed and emerging markets equities performed even
better than U.S. equities, with the MSCI EAFE (developed market) Index returning
11% and the MSCI Emerging Markets Index returning 18% in the first half of 2007.
The general U.S. bond market, as measured by the Lehman Brothers Aggregate Bond
Index, returned 1% in the first half, as rising bond yields produced price
declines that partially offset income earned. The high yield market, as measured
by the Merrill Lynch High Yield Bond Master II Index, returned 3%, reflecting
its higher yields and continuing investor confidence in the strength of the U.S.
economy.
The United States has enjoyed a cyclical recovery with strong economic growth.
While the growth has slowed recently, we believe that continuing growth at a
moderate rate appears to be more likely than a recession. Slowing growth was due
in large part to a decline in the rate of new home construction and in part to
the lagging effects of rising energy and commodity prices as well as rising
short-term interest rates. Slowing economic activity is also due in part to the
natural maturation of the cyclical expansion as U.S. factories approach full
utilization and the labor market approaches full employment. This slowdown is
therefore not entirely unwelcome, as it reduces the threat of higher inflation.
The Federal Reserve Board (the Fed) continues to highlight its commitment to
keeping inflationary pressures contained. This is in keeping with "best
practices" among the world's central banks: low and stable inflation is believed
to be the best backdrop for stable economic growth and low average unemployment
over the long term. Keeping inflation low is also an important support for stock
and bond valuations, and so the Fed's policy is investor-friendly.
2
Letter
In Europe, solid GDP growth driven by a positive operating environment for
European companies, especially those that are benefiting from strong export
markets for their goods and services, is driving unemployment lower and
supporting growing consumption. European inflationary pressures appear to be
largely under control, with the European Central bank remaining strongly
vigilant. Japanese economic growth continues to make progress, and the country
has become a more attractive market as deflationary problems recede. Economic
growth in emerging market countries remains faster than in the developed world
as they continue to "catch up." Leading the way is China, which continues its
rise as a world economic power.
Looking forward, we believe that the overall climate for equity investors
generally will continue to be positive, although valuations are less attractive
than they were a year ago, and a correction after a period of strong performance
is possible. Rising yields have depressed year-to-date bond returns, but
increased the attractiveness of bonds looking forward.
Sudden swings in the markets are always to be expected. Just as staying
diversified and invested are important investment principles, it is also
important to pay attention to asset allocation. As always, we encourage
shareholders to work closely with their financial advisor to find the mix of
stocks, bonds and money market assets that is aligned to their particular risk
tolerance and investment objective.
Respectfully,
/s/ Daniel K. Kingsbury
Daniel K. Kingsbury
President and CEO
Pioneer Investment Management USA, Inc.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These statements should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
3
Pioneer Bond Fund
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/07
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Fixed-income securities generated moderate results over the 12 months ending
June 30, 2007 - a period characterized by relatively stable interest rates. The
U.S. Federal Reserve Board (the Fed) left the key short-term interest rate - the
Fed funds rate - unchanged throughout the 12 months. Market interest rates of
longer-maturity bonds tended to decline during the first half of the fiscal year
before trending up throughout the second half of the fiscal year. In the
following interview, Kenneth J. Taubes discusses the factors that influenced the
performance of Pioneer Bond Fund during the 12 months ending June 30, 2007. Mr.
Taubes, director of Pioneer's Fixed Income Group, oversees the team responsible
for the daily management of the Fund.
Q: How did the Fund perform during the 12 months ending June 30, 2007?
A: Pioneer Bond Fund's Class A shares produced a total return of 5.31%, at net
asset value, for the 12 months. For the same period, the Lehman Brothers
Aggregate Bond Index returned 6.12%. The average return of the 173 funds in
Lipper's corporate debt, A-rated category was 5.65%. On June 30, 2007, the
30-day SEC yield for the Fund's Class A shares was 4.22%.
Call 1-800-225-6292 or visit www.pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher
than the performance data quoted.
The performance data quoted represents past performance, which is no
guarantee of future results. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.
Q: What was the investment environment like during the 12 months ending June
30, 2007?
A: Overall, it was a period of moderate returns and stable prices in the
domestic bond market, with the Fed keeping monetary policy on hold for the
entire period. While the Fed funds rate - the most influential short-term
rate - remained unchanged at 5.25% for the fiscal year, investors'
perceptions about the economy and the threat of inflation did change.
Interest rates for longer-maturity bonds tended to decline for much of the
first nine months of the fiscal year before starting to rise in the final
months, particularly
4
Pioneer Bond Fund
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May and June 2007. It was then that investors grew more concerned that the
Fed might tighten monetary policies in an effort to stem inflationary
pressures. The yield curve - reflecting the difference in yields between
short-term and long-term maturities - steepened over the 12 months with
yields of shorter-term maturities declining more than longer-term
maturities in the early months, and yields of longer-term maturities rising
more than shorter-term maturities in the closing months. Supported by
growing corporate earnings and low default rates, lower-rated,
high-yielding corporate bonds outperformed higher-quality securities. The
performance edge of high-yield, however, was more pronounced in the earlier
months of the fiscal year than in the later months.
Q: What were your principal strategies, and how did they affect the Fund's
results?
A: We generally upgraded the Fund's overall credit quality and maintained a
relatively low exposure to the high-yield corporate sector and focusing on
the higher-quality tiers of the high-yield universe. As high-yield
corporate bonds continued to outperform higher-quality sectors, the yield
advantages of lower-quality bonds contracted. We believed that investors
were receiving less compensation for taking on the added credit risks of
high-yield investments. However, we still had about 6% of Fund assets
invested in below-investment grade securities at the end of the period, and
our high-yield exposure contributed to results. We also lowered our
exposure to investment-grade corporate securities from more than 20% of
Fund assets to about 14% by June 30, 2007. We did so because we were
concerned about the risks that companies that had issued bonds might be
acquired in highly leveraged transactions that could negatively affect the
values of existing securities. The underweighting, however, hurt relative
performance during a period when investment-grade corporate bonds
outperformed other higher-quality sectors. As we cut back our exposure to
corporates, we increased our investments in mortgage-backed securities,
which helped performance as they outperformed Treasuries. Agency mortgage
securities accounted for more than 60% Fund assets on June 30, 2007. The
Fund had no subprime residential mortgage exposure.
5
Pioneer Bond Fund
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PORTFOLIO MANAGEMENT DISCUSSION 6/30/07 (continued)
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Contributors to performance included bonds issued by two
property-and-casualty insurance companies, Odyssey Re and Platinum
Underwriters. Both companies benefited from a relatively mild hurricane
season in 2006. Holding back results, however, were our investments in
securities of HCA, or Hospital Corporation of America, and Sallie Mae, a
student loan organization that formerly had been government-sponsored. HCA
had been acquired in an leveraged buyout that undermined the credit quality
of the existing securities while Sallie Mae's bonds underperformed on the
announcement of a leveraged buyout transaction. Though our emphasis on
mortgages generally helped, our positions in some longer-maturity Ginnie
Maes tended to underperform Fannie Mae and Freddie Mac holdings.
Our duration strategy had little impact on results relative to the
benchmarks. Duration is a measure of a bond's price sensitivity to changes
in interest rates. We shortened duration during most of the year to protect
against the risk of falling bond prices should interest rates rise.
However, when market rates rose in the final weeks of the fiscal year, we
lengthened duration somewhat to take advantage of the higher yields
available in the high-grade market. The Fund's effective duration was 4.81
years on June 30, 2007, versus 5.04 years, a year ago. The Fund's average
credit quality was AA on June 30, 2007.
Q: What is your investment outlook?
A: We believe the overall economy is strong, as are the fundamentals of
corporate bonds. However, while corporate earnings are rising and defaults
are low, the yield advantages of lower-rated corporate bonds are low by
historical standards and, in our opinion, don't justify a large emphasis.
In addition, investment-grade corporates also carry the continued risk
posed by merger-and-acquisition activity that can result in downgrades of
credit ratings. As a consequence, we don't believe a large emphasis on
corporate securities appears justified. At the same time, increases in
market interest rates in May and June may have created some additional
opportunities to invest in longer-maturity, high-quality securities.
One factor that could adversely affect the markets is the possibility that
major central banks could continue to raise short-term interest rates. The
Fed also is watching for any signs of rising
6
Pioneer Bond Fund
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inflationary pressures here in the United States. Most types of bonds would
be hurt if the central banks were to become more concerned about rising
inflation and were to raise short-term interest rates. However, we think a
more likely scenario is that inflation would remain in a narrow range
against a backdrop of moderate economic growth, which should reduce the
potential for monetary tightening in the United States. We also expect
short-term volatility in the markets to persist, which should create some
opportunities.
When interest rates rise, the prices of fixed-income securities in the Fund will
generally fall. Conversely, when interest rates fall, the prices of fixed-income
securities in the Fund will generally rise.
Investments in the Fund are subject to possible loss due to the financial
failure of issuers of underlying securities and their inability to meet their
debt obligations.
Prepayment risk is the chance that mortgage-backed bonds will be paid off early
if falling interest rates prompt homeowners to refinance their mortgages. Forced
to reinvest the unanticipated proceeds at lower interest rates, the Fund would
experience a decline in income and lose the opportunity for additional price
appreciation associated with falling interest rates. Investments in high-yield
or lower-rated securities are subject to greater-than-average risk. The
securities issued by U.S. Government sponsored entities (i.e., FNMA, Freddie
Mac) are neither guaranteed nor issued by the U.S. Government. The portfolio may
invest in mortgage-backed securities, which during times of fluctuating interest
rates may increase or decrease more than other fixed-income securities.
Mortgage-backed securities are also subject to pre-payments. At times, the
Fund's investments may represent industries or industry sectors that are
interrelated or have common risks, making it more susceptible to any economic,
political, or regulatory developments or other risks affecting those industries
and sectors.
Any information in this shareholder report regarding market or economic trends
or the factors influencing the Fund's historical or future performance are
statements of the opinion of Fund management as of the date of this report.
These opinions should not be relied upon for any other purposes. Past
performance is no guarantee of future results, and there is no guarantee that
market forecasts discussed will be realized.
7
Pioneer Bond Fund
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PORTFOLIO SUMMARY 6/30/07
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Portfolio Diversification
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(As a percentage of total investment portfolio)
[The following data was represented as a pie chart in the printed material]
U.S. Government Securities 71.7%
U.S. Corporate Bonds 17.8%
Asset Backed Securities 3.8%
Collateralized Mortgage Obligations 3.8%
Temporary Cash Investment 1.9%
Senior Secured Loans 0.6%
Preferred Stock 0.4%
Portfolio Quality
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(As a percentage of holdings)
[The following data was represented as a pie chart in the printed material]
AAA 1.6%
AA 3.4%
A 5.7%
BBB 5.2%
BB 4.5%
B & Lower 1.5%
Commercial Paper 1.9%
Treasury/Agency 76.2%
10 Largest Holdings*
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(As a percentage of long-term holdings)
1. U.S. Treasury Bonds, 4.25%, 11/15/13 4.18%
2. U.S. Treasury Notes, 4.0%, 11/15/12 3.44
3. U.S. Treasury Inflation Protected Security, 1.875%, 7/15/15 2.81
4. U.S. Treasury Bonds, 6.25%, 8/15/23 2.69
5. Federal National Mortgage Association, 5.5%, 4/1/36 2.43
6. U.S. Treasury Inflation Protected Security, 2.0%, 1/15/16 2.34
7. Federal Home Loan Mortgage Corp., 5.0%, 11/1/35 1.67
8. Government National Mortgage Association, 5.5%, 1/15/36 1.47
9. Federal Home Loan Mortgage Corp., 4.5%, 10/1/20 1.26
10. Government National Mortgage Association, 5.5%, 3/15/37 1.21
* This list excludes temporary cash investments and derivative instruments.
The portfolio is actively managed, and current holdings may be different.
The holdings listed should not be considered recommendations to buy or sell
any security listed.
8
Pioneer Bond Fund
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PRICES AND DISTRIBUTIONS
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Net Asset Value Per Share
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Class 6/30/07 6/30/06
- ------- --------- --------
A $8.95 $8.89
B $8.90 $8.85
C $8.87 $8.81
R $9.05 $8.99
Y $8.88 $8.83
Class 12/10/06 6/30/06
- ------------ ---------- --------
Investor $9.16 $8.89
Distributions Per Share
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7/1/07 - 6/30/07
-------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------- ------------ --------------- --------------
A $0.4095 $ - $ -
B $0.3266 $ - $ -
C $0.3258 $ - $ -
R $0.3912 $ - $ -
Y $0.4456 $ - $ -
7/1/07 - 12/10/06
-------------------------------------------
Net
Investment Short-Term Long-Term
Class Income Capital Gains Capital Gains
- ------------ ------------ --------------- --------------
Investor $0.1880 $ - $ -
9
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/07 CLASS A SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, at public offering price, compared to that
of the Lehman Brothers Aggregate Bond Index.
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Average Annual Total Returns
(As of June 30, 2007)
Net Asset Public
Value Offering
Period (NAV) Price (POP)
10 Years 5.62% 5.13%
5 Years 5.13 4.16
1 Year 5.31 0.56
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Expense Ratio
(Per prospectus dated November 1, 2006)
Gross Net
1.11% 1.00%
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[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Lehman Brothers
Pioneer Aggregate
Bond Fund Bond Index
6/97 $ 9,550 $10,000
$10,506 $11,054
6/99 $10,648 $11,402
$10,786 $11,922
6/01 $11,940 $13,261
$12,841 $14,405
6/03 $14,303 $15,903
$14,729 $15,954
6/05 $15,856 $17,039
$15,658 $16,902
6/07 $16,489 $17,937
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
NAV results represent the percent change in net asset value per share. Returns
would have been lower had sales charges been reflected. POP returns reflect
deduction of maximum 4.5% sales charge. All results are historical and assume
the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through 11/1/09 for Class A shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a market value-weighted measure of
Treasury and agency issues, corporate bond issues and mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an Index.
10
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/07 CLASS B SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of June 30, 2007)
If If
Period Held Redeemed
10 Years 4.72% 4.72%
5 Years 4.18 4.18
1 Year 4.26 0.26
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Expense Ratio
(Per prospectus dated November 1, 2006)
Gross Net
1.99% 1.90%
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[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Lehman Brothers
Pioneer Aggregate
Bond Fund Bond Index
6/97 $10,000 $10,000
$10,921 $11,054
6/99 $10,984 $11,402
$11,037 $11,922
6/01 $12,109 $13,261
$12,929 $14,405
6/03 $14,279 $15,903
$14,571 $15,954
6/05 $15,550 $17,039
$15,216 $16,902
6/07 $15,865 $17,937
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
"If Held" results represent the percent change in net asset value per share.
Returns would have been lower had sales charges been reflected. "If redeemed"
returns reflect the deduction of applicable contingent deferred sales charge
(CDSC). Effective December 1, 2004, the period during which a CDSC is applied to
withdrawals was shortened to 5 years. The maximum CDSC for Class B shares
continues to be 4%. For more complete information, please see the prospectus for
details. Note: Shares purchased prior to December 1, 2004 remain subject to the
CDSC in effect at the time you purchased those shares. For performance
information for shares purchased prior to December 1, 2004, please visit
www.pioneerinvestments.com/bshares.
All results are historical and assume the reinvestment of dividends and capital
gains. Other share classes are available for which performance and expenses will
differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through 11/1/08 for Class B shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a market value-weighted measure of
Treasury and agency issues, corporate bond issues and mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an Index.
11
Pioneer Bond Fund
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PERFORMANCE UPDATE 6/30/07 CLASS C SHARES
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Investment Returns
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The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of June 30, 2007)
If If
Period Held Redeemed
10 Years 4.66% 4.66%
5 Years 4.19 4.19
1 Year 4.39 4.39
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Expense Ratio
(Per prospectus dated November 1, 2006)
Gross Net
1.89% 1.89%
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[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Lehman Brothers
Pioneer Aggregate
Bond Fund Bond Index
6/97 $10,000 $10,000
$10,912 $11,054
6/99 $10,977 $11,402
$11,017 $11,922
6/01 $12,059 $13,261
$12,848 $14,405
6/03 $14,168 $15,903
$14,468 $15,954
6/05 $15,434 $17,039
$15,113 $16,902
6/07 $15,776 $17,937
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Class C shares held for less than one year are also subject to a 1% contingent
deferred sales charge (CDSC). The performance of Class C shares does not reflect
the 1% front-end sales charge in effect prior to February 1, 2004. If you paid a
1% sales charge, your returns would be lower than those shown above. "If Held"
results represent the percent change in net asset value per share. Returns would
have been lower had sales charges been reflected. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through 11/1/08 for Class C shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a market value-weighted measure of
Treasury and agency issues, corporate bond issues and mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an Index.
12
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/07 CLASS R SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of June 30, 2007)
If If
Period Held Redeemed
10 Years 5.26% 5.26%
5 Years 4.93 4.93
1 Year 5.04 5.04
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated November 1, 2006)
Gross Net
1.46% 1.25%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Lehman Brothers
Pioneer Aggregate
Bond Fund Bond Index
6/97 $10,000 $10,000
$10,950 $11,054
6/99 $11,042 $11,402
$11,130 $11,922
6/01 $12,259 $13,261
$13,119 $14,405
6/03 $14,562 $15,903
$15,027 $15,954
6/05 $16,120 $17,039
$15,889 $16,902
6/07 $16,690 $17,937
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
The performance of Class R shares for the period prior to the commencement of
operations of Class R shares on April 1, 2003 is based on the performance of
Class A shares, reduced to reflect the higher distribution and service fees of
Class R shares. For the period after April 1, 2003, the actual performance of
Class R shares is reflected. The performance of Class R shares does not reflect
the 1% CDSC that was in effect prior to July 1, 2004. Class R shares are not
subject to sales charges and are available for limited groups of eligible
investors, including institutional investors. All results are historical and
assume the reinvestment of dividends and capital gains. Other share classes are
available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The net expense ratio reflects contractual expense limitation currently in
effect through 11/1/08 for Class R shares. There can be no assurance that
Pioneer will extend the expense limitation beyond such time. Please see the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a market value-weighted measure of
Treasury and agency issues, corporate bond issues and mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an Index.
13
Pioneer Bond Fund
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE 6/30/07 CLASS Y SHARES
- --------------------------------------------------------------------------------
Investment Returns
- --------------------------------------------------------------------------------
The mountain chart on the right shows the change in value of a $10,000
investment made in Pioneer Bond Fund, compared to that of the Lehman Brothers
Aggregate Bond Index.
- --------------------------------------------------------------------------------
Average Annual Total Returns
(As of June 30, 2007)
If If
Period Held Redeemed
10 Years 5.87% 5.87%
5 Years 5.57 5.57
1 Year 5.65 5.65
- --------------------------------------------------------------------------------
Expense Ratio
(Per prospectus dated November 1, 2006)
Gross Net
0.58% 0.58%
- --------------------------------------------------------------------------------
[THE FOLLOWING DATA IS A REPRESENTATION OF A MOUNTAIN CHART IN THE PRINTED
MATERIAL]
Value of $10,000 Investment
Lehman Brothers
Pioneer Aggregate
Bond Fund Bond Index
6/97 $10,000 $10,000
$11,004 $11,054
6/99 $11,152 $11,402
$11,297 $11,922
6/01 $12,506 $13,261
$13,495 $14,405
6/03 $15,096 $15,903
$15,621 $15,954
6/05 $16,881 $17,039
$16,750 $16,902
6/07 $17,697 $17,937
Call 1-800-225-6292 or visit pioneerinvestments.com for the most recent
month-end performance results. Current performance may be lower or higher than
the performance data quoted.
The performance data quoted represents past performance, which is no guarantee
of future results. Investment return and principal value will fluctuate, and
shares, when redeemed, may be worth more or less than their original cost.
Performance for periods prior to the inception of the Fund's Class Y shares
reflects the NAV performance of the Fund's Class A shares. The performance does
not reflect differences in expenses, including the Rule 12b-1 fees applicable to
Class A shares. Since fees for Class A shares are generally higher than those of
Class Y shares, the performance shown for Y shares prior to their inception
would have been higher. Class A shares are used as a proxy through 9/20/01.
Class Y shares are not subject to sales charges and are available for limited
groups of eligible investors, including institutional investors. All results are
historical and assume the reinvestment of dividends and capital gains. Other
share classes are available for which performance and expenses will differ.
Performance results reflect any applicable expense waivers in effect during the
periods shown. Without such waivers Fund performance would be lower. Waivers may
not be in effect for all funds. Certain fee waivers are contractual through a
specified period. Otherwise, fee waivers can be rescinded at any time. See the
prospectus and financial statements for more information.
The performance table and graph do not reflect the deduction of fees and taxes
that a shareowner would pay on Fund distributions or the redemption of Fund
shares.
The Lehman Brothers Aggregate Bond Index is a market value-weighted measure of
Treasury and agency issues, corporate bond issues and mortgage-backed
securities. Index returns are calculated monthly, assume reinvestment of
dividends and, unlike Fund returns, do not reflect any fees, expenses or sales
charges. You cannot invest directly in an Index.
14
Pioneer Bond Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES
- --------------------------------------------------------------------------------
As a shareowner in the Fund, you incur two types of costs:
(1) ongoing costs, including management fees, distribution and/or service
(12b-1) fees, and other Fund expenses; and
(2) transaction costs, including sales charges (loads) on purchase payments.
This example is intended to help you understand your ongoing expenses (in
dollars) of investing in the Fund and to compare these costs with the ongoing
costs of investing in other mutual funds. The example is based on an investment
of $1,000 at the beginning of the Fund's latest six-month period and held
throughout the six months.
Using the Tables
Actual Expenses
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you paid over the period as
follows:
1. Divide your account value by $1,000
Example: an $8,600 account value [divided by] $1,000 = 8.6
2. Multiply the result in (1) above by the corresponding share class's number
in the third row under the heading entitled "Expenses Paid During Period"
to estimate the expenses you paid on your account during this period.
Expenses Paid on a $1,000 Investment in Pioneer Bond Fund
Based on actual returns from January 1, 2007** through June 30, 2007***
Share Class A B C Investor R Y
- --------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 1/1/07**
Ending Account Value $1,017.00 $1,015.88 $1,017.74 $1,052.00 $1,016.75 $1,016.06
(after expenses)
On 6/30/07***
Expenses Paid $ 5.00 $ 9.60 $ 9.21 $ 3.34 $ 6.25 $ 2.85
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.90%,
1.84%, 0.73%, 1.25%, and 0.57%, for Class A, Class B, Class C, Investor
Class, Class R, and Class Y shares, respectively, multiplied by the average
account value over the period, multiplied by 181/365 (163/365 for Investor
Class) (to reflect the one-half year period).
** 7/1/06 for Investor Class shares
*** 12/10/06 for Investor Class shares
15
Pioneer Bond Fund
- --------------------------------------------------------------------------------
COMPARING ONGOING FUND EXPENSES (continued)
- --------------------------------------------------------------------------------
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in the Fund and
other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as sales
charges (loads) that are charged at the time of the transaction. Therefore, the
table below is useful in comparing ongoing costs only and will not help you
determine the relative total costs of owning different funds. In addition, if
these transaction costs were included, your costs would have been higher.
Expenses Paid on a $1,000 Investment in Pioneer Bond Fund
Based on a hypothetical 5% per year return before expenses, reflecting the
period from January 1, 2007** through June 30, 2007***
Share Class A B C Investor R Y
- --------------------------------------------------------------------------------------------
Beginning Account $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Value On 1/1/07**
Ending Account Value $1,019.84 $1,015.27 $1,015.67 $1,019.07 $1,018.60 $1,021.97
(after expenses)
On 6/30/07***
Expenses Paid $ 5.01 $ 9.59 $ 9.20 $ 3.29 $ 6.26 $ 2.86
During Period*
* Expenses are equal to the Fund's annualized expense ratio of 1.00%, 1.90%,
1.84%, 0.73%, 1.25%, and 0.57%, for Class A, Class B, Class C, Investor
Class, Class R, and Class Y shares, respectively, multiplied by the average
account value over the period, multiplied by 181/365 (163/365 for Investor
Class) (to reflect the one-half year period).
** 7/1/16 for Investor Class shares
*** 12/10/06 for Investor Class shares
16
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/07
- --------------------------------------------------------------------------------
S&P/
Floating Moody's
Shares Rate (b) Ratings Value
PREFERRED STOCK - 0.4%
Insurance - 0.4%
Life & Health Insurance - 0.3%
153,800 Delphi Financial Group, 7.376%, 5/15/37* $ 3,787,325
------------
TOTAL PREFERRED STOCK
(Cost $3,845,000) $ 3,787,325
------------
Principal
Amount
ASSET BACKED SECURITIES - 3.8%
Energy - 0.1%
Oil & Gas Equipment & Services - 0.1%
$1,000,000 8.37 NR/NR Sevan Marine ASA, Floating Rate Note,
5/14/13 (144A) $ 1,012,500
------------
Total Energy $ 1,012,500
------------
Transportation - 0.1%
Airlines - 0.1%
1,286,124 A+/A2 Southwest Airlines Co., 7.67%, 1/2/14 $ 1,296,284
------------
Total Transportation $ 1,296,284
------------
Consumer Services - 0.4%
Restaurants - 0.4%
3,620,000 BB/Ba3 Dunkin Brands Master Finance LLC, 8.28%,
6/20/31 (144A) $ 3,656,117
------------
Total Consumer Services $ 3,656,117
------------
Food & Drug Retailing - 0.5%
Food Retail - 0.5%
4,870,000 BB/Aaa Dominos Pizza Master Issuer LL,
7.629%, 4/25/37 $ 4,764,623
------------
Total Food & Drug Retailing $ 4,764,623
------------
Banks - 0.5%
Thrifts & Mortgage Finance - 0.5%
3,375,000 AAA/Aaa GMAC Commercial Mortgage Securities, Inc.,
4.864%, 12/10/41 $ 3,195,410
1,465,131 6.32 A-/Baa1 Taganka Car Loan Finance Plc, Floating Rate
Note, 11/14/13 (144A) 1,465,131
------------
$ 4,660,541
------------
Total Banks $ 4,660,541
------------
The accompanying notes are an integral part of these financial statements. 17
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/07 (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Diversified Financials - 1.7%
Diversified Financial Services - 1.7%
$ 2,734,835 BB-/Ba1 Caithness Coso Fund Corp., 6.263%,
6/15/14 (144A) $ 2,694,332
9,885,000 AAA/Aaa JP Morgan Chase Commercial Mortgage Sec
Corp., 5.8755%, 4/15/45 9,944,789
1,420,200 BBB+/Baa2 PF Export Receivable Master Trust, 6.436%,
6/1/15 (144A) 1,468,132
2,273,301 BBB/Baa2 Power Receivables Finance, 6.29%,
1/1/12 (144A) 2,297,080
------------
$ 16,404,333
------------
Total Diversified Financials $ 16,404,333
------------
Utilities - 0.5%
Electric Utilities - 0.5%
1,564,506 BBB-/Baa3 FPL Energy America Wind LLC, 6.639%,
6/20/23 (144A) $ 1,589,554
498,400 BB-/Ba2 FPL Energy Wind Funding, 6.876%,
6/27/17 (144A) 495,285
2,732,091 BB/Ba2 Tenaska Alabama, 7.0%, 6/30/21 (144A) 2,795,552
------------
$ 4,880,391
------------
Total Utilities $ 4,880,391
------------
TOTAL ASSET BACKED SECURITIES
(Cost $37,202,472) $ 36,674,789
------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 3.7%
Banks - 2.8%
Thrifts & Mortgage Finance - 2.8%
1,434,148 AAA/Aaa Bank of America Commercial Mortgage, Inc.,
4.877%, 7/10/42 $ 1,361,821
10,000,000 AAA/Aaa LB-UBS Commercial Mortgage, 5.372%,
9/15/39 9,657,190
7,770,000 5.74 AAA/Aaa SASC 2007 BHC1 A1, Floating Rate Note,
12/18/49 7,461,554
2,640,000 5.75 AAA/NR SASC 2007 BHC1 A2, Floating Rate Note,
12/18/49 2,511,889
1,825,000 NR/Ba1 SBA CMBS Trust, 6.709%, 11/15/36 1,804,219
1,300,000 AA/Aa2 T SRA R 2006-1 B, 5.7467%, 10/15/36 1,274,051
3,787,250 AAA/Aaa Wachovia Bank Commercial Mortgage Trust,
4.803%, 10/15/41 3,572,289
------------
$ 27,643,013
------------
Total Banks $ 27,643,013
------------
18 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Diversified Financials - 0.4%
Diversified Financial Services - 0.3%
$1,150,000 NR/Ba1 Global Signal, 7.036%, 2/15/36 (144A) $ 1,147,230
1,926,861 5.68 AAA/Aaa RALI 2005-QA10 A41, Floating Rate Note,
5.7412%, 9/25/35 1,909,867
575,000 NR/Ba2 Tower 2004-2A F, 6.376%, 12/15/14 565,096
------------
$ 3,622,193
------------
Total Diversified Financials $ 3,622,193
------------
Government - 0.5%
160,962 AAA/Aaa Federal Home Loan Bank, 6.0%, 4/15/32 $ 162,575
4,901,008 AAA/Aaa Federal National Mortgage Association,
6.1%, 9/15/18 4,899,746
------------
$ 5,062,321
------------
Total Government $ 5,062,321
------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $37,435,582) $ 36,327,527
------------
CORPORATE BONDS - 17.7%
Energy - 0.7%
Integrated Oil & Gas - 0.2%
45,000 BBB/Baa2 Petro-Canada, 4.0%, 7/15/13 $ 40,789
2,000,000 A-/A1 Phillips Pete Co., 6.375%, 3/30/09 2,037,172
25,000 BBB+/Baa1 USX Corp., 6.85%, 3/1/08 25,215
------------
$ 2,103,176
------------
Oil & Gas Equipment & Services - 0.0%
875,000 B+/B1 Holly Energy Partners LP, 6.25%, 3/1/15 $ 818,125
------------
Oil & Gas Exploration & Production - 0.4%
75,000 BBB/Baa1 Pemex Project Funding Master,
9.125%, 10/13/10 $ 82,500
1,557,600 A/Aa3 Ras Laffan Liq Natural Gas, 3.437%,
9/15/09 (144A) 1,519,657
1,605,000 A/Aa3 Ras Laffan LNG, 3 5.832%,
9/30/16 (144A) 1,577,892
650,000 BB+/Ba2 Southern Star Central Corp., 6.75%, 3/1/16 640,250
------------
$ 3,820,299
------------
Oil & Gas Refining & Marketing - 0.0%
320,000 BBB/Baa2 Boardwalk Pipelines LLC, 5.5%, 2/1/17 $ 304,880
------------
Total Energy $ 7,046,480
------------
The accompanying notes are an integral part of these financial statements. 19
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/07 (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Materials - 0.7%
Aluminum - 0.2%
$1,700,000 B/B3 Novelis Inc., 7.25%, 2/15/15 $ 1,744,625
------------
Commodity Chemicals - 0.2%
1,500,000 B+/Ba3 Nova Chemicals, Ltd., 6.5%, 1/15/12 $ 1,402,500
------------
Construction Materials - 0.2%
2,000,000 A-/A1 Vulcan Materials Co., 6.0%, 4/1/09 $ 2,021,628
------------
Fertilizers & Agricultural Chemicals - 0.0%
45,000 BBB+/Baa1 Potash Corp. Saskatchewan, 4.875%,
3/1/13 $ 42,671
------------
Paper Products - 0.1%
1,300,000 B/B3 Bowater Canada Finance, 7.95%, 11/15/11 $ 1,223,625
------------
Total Materials $ 6,435,049
------------
Capital Goods - 1.7%
Aerospace & Defense - 0.0%
40,000 A+/A2 Boeing Co., 5.125%, 2/15/13 $ 39,381
------------
Construction & Farm Machinery & Heavy Trucks - 0.7%
1,000,000 A/A2 Caterpillar, Inc., 6.55%, 5/1/11 $ 1,036,104
5,000,000 A/A2 Deere & Co., 7.0%, 3/15/12 5,286,450
------------
$ 6,322,554
------------
Electrical Component & Equipment - 0.1%
1,435,429 NR/WD Orcal Geothermal, 6.21%, 12/30/20 (144A) $ 1,408,471
------------
Industrial Conglomerates - 0.7%
7,000,000 AAA/Aaa GE Electric Co., 5.0%, 2/1/13 $ 6,786,766
------------
Trading Companies & Distributors - 0.2%
2,350,000 BBB-/Baa3 Glencore Funding LLC, 6.0%,
4/15/14 (144A) $ 2,306,344
------------
Total Capital Goods $ 16,863,516
------------
Consumer Durables & Apparel - 0.4%
Homebuilding - 0.4%
1,230,000 BBB-/BBB- C10 Capital SPV, Ltd., Floating Rate Note,
12/31/49 $ 1,196,630
2,260,000 6.64 BBB-/NR C8 Capital SPV, Ltd., Floating Rate Note,
12/31/49 2,219,591
------------
$ 3,416,221
------------
Total Consumer Durables & Apparel $ 3,416,221
------------
20 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Consumer Services - 0.5%
Casinos & Gaming - 0.2%
$2,030,000 B/Ba3 Station Casinos, Inc., 6.625%, 3/15/18 $ 1,745,800
------------
Education Services - 0.3%
2,800,000 AAA/Aaa President & Fellows of Harvard, 6.3%,
10/1/37 $ 2,837,688
------------
Total Consumer Services $ 4,583,488
------------
Media - 0.5%
Broadcasting & Cable TV - 0.0%
135,000 BBB+/Baa2 Comcast Corp., 5.3%, 1/15/14 $ 130,131
------------
Media - 0.5%
5,000,000 BBB+/Baa2 Comcast Cable Corp., 6.75%, 1/30/11 $ 5,175,280
------------
Total Media $ 5,305,411
------------
Retailing - 0.1%
Department Stores - 0.1%
1,000,000 BBB/Baa2 May Department Store Co., 7.9%, 10/15/07 $ 1,004,721
25,000 A/Baa1 Nordstrom, Inc., 5.625%, 1/15/09 25,053
------------
$ 1,029,774
------------
Total Retailing $ 1,029,774
------------
Food, Beverage & Tobacco - 0.6%
Brewers - 0.0%
55,000 BBB+/Baa1 Miller Brewing Co., 5.5%, 8/15/13 (144A) $ 54,080
------------
Packaged Foods & Meats - 0.6%
5,055,000 A+/A1 Unilever Capital Corp., 7.125%, 11/1/10 $ 5,298,757
------------
Soft Drinks - 0.0%
55,000 A/A3 Bottling Group LLC, 5.0%, 11/15/13 $ 53,071
------------
Total Food, Beverage & Tobacco $ 5,405,908
------------
Household & Personal Products - 0.2%
Household Products - 0.2%
1,700,000 AA-/Aa3 Kimberly Clark Corp., 7.1%, 8/1/07 $ 1,701,977
------------
Total Household & Personal Products $ 1,701,977
------------
Banks - 1.1%
Diversified Banks - 0.6%
1,100,000 AA-/Aa2 Nationsbank Corp., 7.75%, 8/15/15 $ 1,230,027
1,000,000 BB+/Baa2 TNK-BP Finance SA, 6.625%,
3/20/17 (144A) 968,800
1,880,000 BB+/Baa2 TNK-BP Finance SA, 7.5%, 7/18/16 (144A) 1,938,280
2,000,000 AA+/Aa1 U.S. Bank, 3.75%, 2/6/09 1,953,428
------------
$ 6,090,535
------------
The accompanying notes are an integral part of these financial statements. 21
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/07 (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Regional Banks - 0.5%
$4,500,000 A+/Aa3 Branch Banking & Trust Co., 4.875%,
1/15/13 $ 4,327,214
------------
Total Banks $ 10,417,749
------------
Diversified Financials - 2.5%
Asset Management & Custody Banks - 1.6%
2,000,000 A/Aa3 Bank of New York, 4.95%, 3/15/15 $ 1,900,236
2,000,000 A/Aa3 Mellon Financial Co., 6.4%, 5/14/11 2,059,030
6,000,000 A+/A1 Northern Trust Co., 7.1%, 8/1/09 6,190,962
5,000,000 A+/A1 State Street Corp., 7.65%, 6/15/10 5,294,000
------------
$ 15,444,228
------------
Consumer Finance - 0.6%
2,055,000 B/B1 Ford Motor Credit Co., 5.7%, 1/15/10 $ 1,963,244
2,500,000 5.33 A/A2 SLM Corp., Floating Rate Note, 4/18/08 2,485,003
2,340,000 4.04 BBB+/A2 SLM Corp., Floating Rate Note, 7/25/14 1,860,300
------------
$ 6,308,547
------------
Diversified Financial Services - 0.1%
1,000,000 AA-/Aa1 Bank One Texas National, 6.25%, 2/15/08 $ 1,003,921
------------
Specialized Finance - 0.1%
1,245,000 BB/Ba2 NSG Holdings LLC, 7.75%, 12/15/25 144A $ 1,257,450
------------
Total Diversified Financials $ 24,014,146
------------
Insurance - 4.5%
Life & Health Insurance - 1.3%
1,000,000 A/A2 Metlife, 6.125%, 12/1/11 $ 1,021,224
2,830,000 B/B2 Presidential Life Corp., 7.875%, 2/15/09 2,830,000
3,500,000 AA/Aa3 Protective Life, 4.0%, 10/7/09 3,395,060
6,000,000 AA/A1 Prudential Funding LLC, 6.6%, 5/15/08 6,051,084
------------
$ 13,297,368
------------
Multi-Line Insurance - 1.5%
5,000,000 AA+/Aa2 Asif Global Financial XVIII, 3.85%,
11/26/07 (144A) $ 4,970,430
4,450,000 BB+/Ba1 Hanover Insurance Group,
7.625%, 10/15/25 4,624,614
3,280,000 BB+/Baa3 Liberty Mutual Group, 7.0%,
3/15/37 (144A) 3,149,669
1,950,000 A/A3 Loew Corp., 5.25%, 3/15/16 1,868,408
------------
$ 14,613,121
------------
22 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Property & Casualty Insurance - 1.0%
$3,000,000 AAA/Aaa Berkshire Hathway, Inc., 3.375%, 10/15/08 $ 2,927,409
1,000,000 A/A2 Chubb Corp., 6.0%, 11/15/11 1,015,227
3,385,000 BBB-/NR Kingsway America, Inc., 7.5%, 2/1/14 3,435,555
2,585,000 BBB-/Baa3 Ohio Casualty Corp., 7.3%, 6/15/14 2,748,181
------------
$ 10,126,372
------------
Reinsurance - 0.6%
5,700,000 BBB/NA Platinum Underwriters HD, 7.5%, 6/1/17 $ 5,867,831
------------
Total Insurance $ 43,904,692
------------
Real Estate - 1.7%
Real Estate Management & Development - 0.8%
7,200,000 BB-/Ba3 Forest City Enterprises, 7.625%, 6/1/15 $ 7,254,000
------------
Real Estate Investment Trusts - 0.9%
1,100,000 BBB-/Baa3 Colonial Reality LP, 6.15%, 4/15/13 $ 1,112,653
3,575,000 BBB-/Baa2 Health Care REIT, Inc., 6.2%, 6/1/16 3,541,788
860,000 BBB-/Baa2 Health Care, Inc., 6.0%, 11/15/13 852,695
935,000 BBB-/Baa2 Health Care, Inc., 8.0%, 9/12/12 1,014,643
1,815,000 AAA/Aaa Trustreet Properties, Inc., 7.5%, 4/1/15 1,953,198
565,000 BB+/Ba2 Ventas Realty Capital Corp., 7.125%,
6/1/15 (144A) 569,238
------------
$ 9,044,215
------------
Total Real Estate $ 16,298,215
------------
Technology Hardware & Equipment - 0.9%
Computer Hardware - 0.7%
5,000,000 A+/A1 International Business Machines,
5.375%, 2/1/09 $ 5,007,290
2,000,000 BBB-/Baa3 NCR Corp., 7.125%, 6/15/09 2,043,106
------------
$ 7,050,396
------------
Technology Distributors - 0.2%
1,745,000 BB+/Ba1 Anixter International Corp., 5.95%, 3/1/15 $ 1,631,575
------------
Total Technology Hardware & Equipment $ 8,681,971
------------
Telecommunication Services - 0.2%
Integrated Telecommunication Services - 0.2%
1,500,000 A/A3 GTE California, Inc., 6.7%, 9/1/09 $ 1,534,448
------------
Total Telecommunication Services $ 1,534,448
------------
The accompanying notes are an integral part of these financial statements. 23
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/07 (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Utilities - 1.6%
Electric Utilities - 0.9%
$ 1,700,000 A/A2 Alabama Power Co., 7.125%, 10/1/07 $ 1,705,817
687,000 BBB-/Baa3 Crocket Cogeneration, 5.869%,
3/30/25 (144A) 659,925
2,050,000 BBB+/Baa3 Entergy Gulf States, 5.7%, 6/1/15 1,964,538
3,000,000 A/A2 Georgia Power Co., 4.0%, 1/15/11 2,857,425
1,555,000 BBB-/Baa3 Kiowa Power Partners LLC, 5.737%,
3/30/21 (144A) 1,492,924
------------
$ 8,680,629
------------
Gas Utilities - 0.1%
1,720,000 7.20 BB/Ba1 Southern Union Co., 7.2%, 11/1/66 $ 1,722,270
------------
Indep Power Producer & Energy Traders - 0.5%
5,000,000 A-/A3 Duke Energy Corp., 6.25%, 1/15/12 $ 5,132,305
------------
Total Utilities $ 15,535,204
------------
TOTAL CORPORATE BONDS
(Cost $173,254,872) $172,174,249
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 71.3%
65,000 AAA/Aaa Federal Home Loan Mortgage Corp.,
3.875%, 6/14/13 60,147
58,201,775 AAA/Aaa Federal Home Loan Mortgage Corp., 4.5%,
11/1/18 - 9/1/35 54,246,152
27,140,474 AAA/Aaa Federal Home Loan Mortgage Corp., 5.0%,
10/1/20 - 11/1/35 25,704,228
14,835,317 AAA/Aaa Federal Home Loan Mortgage Corp., 5.5%,
12/1/18 - 11/1/35 14,386,615
16,821,543 NR/NR Federal Home Loan Mortgage Corp., 6.0%
5/1/17 - 6/1/35 16,733,756
2,454,861 AAA/Aaa Federal Home Loan Mortgage Corp., 6.5%,
3/1/13 - 10/1/33 2,493,973
9,832 NR/NR Federal Home Loan Mortgage Corp., 7.0%,
12/1/30 10,165
1,134 AAA/Aaa Federal Home Loan Mortgage Corp., 8.0%,
4/1/08 1,140
4,300,120 NR/NR Federal National Mortgage Association,
4.0%, 8/1/18 4,002,020
24,205,307 AAA/Aaa Federal National Mortgage Association,
4.5%, 4/1/19 - 10/1/35 22,734,075
176,380 AAA/Aaa Federal National Mortgage Association,
4.78%, 12/1/12 170,794
24 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
U.S. GOVERNMENT AGENCY OBLIGATIONS - (continued)
$ 16,678,920 AAA/Aaa Federal National Mortgage Association,
5.0%, 12/1/17 - 2/1/36 $ 16,067,183
140,000 AAA/Aaa Federal National Mortgage Association,
5.24%, 8/7/18 135,168
4,545,659 AAA/Aaa Federal National Mortgage Association,
5.429%, 12/1/36 4,545,647
9,618,374 AAA/Aaa Federal National Mortgage Association,
5.448%, 8/1/36 9,594,506
81,095,709 AAA/Aaa Federal National Mortgage Association,
5.5%, 9/1/17 - 5/1/37 78,493,688
5,147,095 AAA/Aaa Federal National Mortgage Association,
5.536%, 8/1/36 5,166,477
23,250,666 AAA/Aaa Federal National Mortgage Association,
6.0%, 6/1/16 - 10/1/35 23,082,008
9,738,010 NR/NR Federal National Mortgage Association,
6.5%, 7/1/29 - 7/1/36 9,844,082
466,753 NR/NR Federal National Mortgage Association,
7.0%, 10/25/07 - 1/1/32 483,657
10,608 NR/NR Federal National Mortgage Association,
7.5%, 8/1/20 - 4/1/30 11,097
63,416 AAA/Aaa Federal National Mortgage Association,
8.0%, 4/1/20 - 5/1/31 67,034
17,045 NR/NR Federal National Mortgage Association,
10.3%, 4/25/19 18,500
16,719,438 AAA/Aaa Government National Mortgage Association,
4.5%, 7/15/33 - 10/15/35 15,357,860
3,722,616 AAA/Aaa Government National Mortgage Association,
5.0%, 7/15/19 - 4/15/35 3,544,019
103,251,418 AAA/Aaa Government National Mortgage Association,
5.5%, 12/15/18 - 3/15/37 100,154,733
33,436,891 AAA/Aaa Government National Mortgage Association,
6.0%, 4/15/14 - 2/15/37 33,298,874
19,818,551 AAA/Aaa Government National Mortgage Association,
6.5%, 8/15/11 - 7/15/35 20,214,390
1,868,692 NR/NR Government National Mortgage Association,
7.0%, 9/15/11 - 5/15/32 1,946,196
241,400 NR/NR Government National Mortgage Association,
7.5%, 8/15/11 - 12/15/31 252,072
13,436 NR/NR Government National Mortgage Association,
7.75%, 11/15/29 - 2/15/30 14,149
The accompanying notes are an integral part of these financial statements. 25
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/07 (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
U.S. GOVERNMENT AGENCY OBLIGATIONS - (continued)
$ 27,975 AAA/Aaa Government National Mortgage Association,
8.0%, 5/15/10 $ 28,925
3,952 NR/NR Government National Mortgage Association,
9.5%, 5/15/20 4,311
4,001 NR/NR Government National Mortgage Association,
10.0%, 1/15/06 - 1/15/18 4,410
437,874 NR/NR Government National Mortgage Association,
I, 6.0%, 2/15/29 437,203
77,860 NR/NR Government National Mortgage Association,
I, 7.0%, 12/15/30 - 3/15/31 81,145
18,821 NR/NR Government National Mortgage Association,
I, 7.5%, 10/15/29 19,717
2,753,071 AAA/Aaa Government National Mortgage Association
II, 4.5%, 12/20/34 - 1/20/35 2,515,558
2,731,667 AAA/Aaa Government National Mortgage Association
II, 5.5%, 10/20/19 - 11/20/34 2,661,977
5,461,971 AAA/Aaa Government National Mortgage Association
II, 6.0%, 11/20/33 5,444,451
146,696 NR/NR Government National Mortgage Association
II, 6.5%, 2/20/29 - 4/20/29 149,965
466,733 AAA/Aaa Government National Mortgage Association
II, 7.0%, 11/20/28 - 12/20/30 670,591
9,000,000 AAA/AAA U.S. Treasury Bonds, 3.625% 5/15/13 8,414,298
4,600,000 AAA/Aaa U.S. Treasury Bonds, 4.0%, 2/15/14 4,354,549
41,200,000 AAA/Aaa U.S. Treasury Bonds, 4.25%, 11/15/13 39,664,641
400,000 AAA/Aaa U.S. Treasury Bonds, 4.5%, 5/15/17 383,500
1,892,000 AAA/Aaa U.S. Treasury Bonds, 4.5%, 11/30/11 1,859,776
9,990,000 AAA/Aaa U.S. Treasury Bonds, 5.125%, 5/15/16 10,046,194
23,000,000 AAA/Aaa U.S. Treasury Bonds, 6.25%, 8/15/23 25,538,993
28,216,547 AAA/Aaa U.S. Treasury Inflation Protected Security,
1.875%, 7/15/15 26,664,637
3,355,050 AAA/Aaa U.S. Treasury Inflation Protected Security,
2.0%, 1/15/14 3,224,257
23,420,219 AAA/Aaa U.S. Treasury Inflation Protected Security,
2.0%, 1/15/16 22,236,398
72,876 AAA/Aaa U.S. Treasury Inflation Protected Security,
2.375%, 4/15/11 72,079
114,929 AAA/Aaa U.S. Treasury Inflation Protected Security,
3.0%, 7/15/12 117,156
116,375 AAA/Aaa U.S. Treasury Inflation Protected Security,
3.375%, 1/15/12 120,121
26 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
U.S. GOVERNMENT AGENCY OBLIGATIONS - (continued)
$ 6,000,000 AAA/Aaa U.S. Treasury Notes, 3.625%, 1/15/10 $ 5,820,000
11,000,000 AAA/Aaa U.S. Treasury Notes, 3.625%, 6/15/10 10,622,733
34,000,000 AAA/Aaa U.S. Treasury Notes, 4.0%, 11/15/12 32,594,848
810,000 AAA/Aaa U.S. Treasury Notes, 4.25%, 11/15/14 772,854
4,600,000 AAA/Aaa U.S. Treasury Notes, 4.5%, 2/15/36 4,165,157
5,000,000 AAA/Aaa U.S. Treasury Notes, 4.5%, 11/15/15 4,822,655
7,800,000 AAA/Aaa U.S. Treasury Notes, 7.5%, 11/15/16 9,198,517
5,257,000 AAA/Aaa U.S. Treasury Strip, 0.0%, 11/15/13 3,842,977
4,550,000 AAA/Aaa U.S. Treasury Strip, 0.0%, 2/15/11 3,829,517
------------
$693,218,515
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $706,312,797) $693,218,515
------------
MUNICIPAL BONDS - 0.0%
Government - 0.0%
Municipal Tobacco - 0.0%
450,000 AAA/NR Tobacco Settlement Authority Iowa,
6.79%, 6/1/10 $ 457,290
------------
TOTAL MUNICIPAL BONDS
(Cost $450,000) $ 457,290
------------
SENIOR SECURED FLOATING RATE LOAN
INTERESTS - 0.6%*
Materials - 0.1%
Diversified Metals & Mining - 0.1%
754,133 BBB/NA Freeport-McMoran Copper & Gold, Tranche B
Term Loan, 9.0%, 3/19/14 $ 755,438
------------
Total Materials $ 755,438
------------
Consumer Services - 0.1%
Casinos & Gaming - 0.1%
284,211 6.88 NR/NR Seminole Tribe of Florida, Term B-2 Delay
Draw, 6.875%, 2/20/14 $ 284,299
84,211 3.81 NR/NR Seminole Tribe of Florida, Term B-1 Delay
Draw, 6.875%, 3/5/14 84,237
281,579 6.88 NR/NR Seminole Tribe of Florida, Term B-3 Delay
Draw, 6.875%, 3/5/14 281,667
------------
$ 650,203
------------
Total Consumer Services $ 650,203
------------
The accompanying notes are an integral part of these financial statements. 27
Pioneer Bond Fund
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS 6/30/07 (continued)
- --------------------------------------------------------------------------------
S&P/
Principal Floating Moody's
Amount Rate (b) Ratings Value
Health Care Equipment & Services - 0.5%
Health Care Facilities - 0.2%
$ 208,621 5.25 B+/Ba2 Sun Health Care, Delayed Draw Term,
4.93091% 1/15/08 $ 209,229
265,517 5.25 B+/Ba2 Sun Health Care, Synthetic LC, 5.26%
4/12/14 266,293
1,175,862 7.36 B+/Ba2 Sun Health Care, Term Loan, 7.355%
4/12/14 1,179,291
------------
$ 1,654,813
------------
Managed Health Care - 0.3%
2,892,750 7.61 BB+/Ba2 HCA, Inc., Tranche B Term Loan, 7.61%
11/7/13 $ 2,908,852
------------
Total Health Care Equipment & Services $ 4,563,665
------------
TOTAL SENIOR SECURED FLOATING RATE
LOAN INTERESTS
(Cost $5,947,196) $ 5,969,306
------------
TEMPORARY CASH INVESTMENT - 1.9%
Repurchase Agreement - 1.9%
18,200,000 NR/NR Lehman Brothers, Inc., 4.00%, dated
6/29/07, repurchase price of $18,200,000
plus accrued interest on 7/2/06,
collateralized by $18,119,090 U.S. Treasury
Bill, 3.625%, 1/15/08 $ 18,200,000
------------
TOTAL TEMPORARY CASH INVESTMENT
(Cost $18,200,000) $ 18,200,000
------------
TOTAL INVESTMENT IN SECURITIES - 99.5%
(Cost $982,647,919) (a) $966,809,001
------------
OTHER ASSETS AND LIABILITIES - 0.5% $ 5,116,983
------------
TOTAL NET ASSETS - 100.0% $971,925,984
============
* Senior secured floating rate loan interests in which the Portfolio invests
generally pay interest at rates that are periodically redetermined by
reference to a base lending rate plus a premium. These base lending rates
are generally (i) the lending rate offered by one or more major European
banks, such as LIBOR (London InterBank Offered Rate), (ii) the prime rate
offered by one or more major United States banks, (iii) the certificate of
deposit or (iv) other base lending rates used by commercial lenders. The
rate shown is the coupon rate at period end.
144A Security is exempt from registration under Rule 144A of the Securities Act
of 1933. Such securities may be resold normally to qualified institutional
buyers in a transaction exempt from registration. At June 30, 2007, the
value of these securities amounted to $40,441,073 or 4.2% of total net
assets.
28 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(a) At June 30, 2007, the net unrealized loss on investments based on cost for
federal income tax purposes of $981,436,246 was as follows:
Aggregate gross unrealized gain for all investments in which there is
an excess of value over tax cost $ 5,551,661
Aggregate gross unrealized loss for all investments in which there is
an excess of tax cost over value (20,178,906)
------------
Net unrealized loss $(14,627,245)
============
(b) Debt obligation with a variable interest rate. Rate shown is rate at period
end.
Purchases and sales of securities (excluding temporary cash investments) for
the year ended June 30, 2007, were as follows:
Purchases Sales
Long-term U.S. Government $291,787,303 $183,759,343
Other Long-term Securities $113,099,531 $ 92,850,556
The accompanying notes are an integral part of these financial statements. 29
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES 6/30/07
- --------------------------------------------------------------------------------
ASSETS:
Investment in securities (cost $982,647,919) $ 966,809,001
Receivables -
Fund shares sold 1,646,999
Interest 7,424,167
Other 49,607
-------------
Total assets $ 975,929,774
-------------
LIABILITIES:
Payables -
Investment securities purchased $ 84,211
Fund shares repurchased 1,098,419
Dividends 1,974,427
Due to bank 505,752
Due to affiliates 214,816
Accrued expenses 126,165
-------------
Total liabilities $ 4,003,790
-------------
NET ASSETS:
Paid-in capital $ 991,005,809
Undistributed net investment income 587,830
Accumulated net realized loss on investments (3,828,737)
Net unrealized loss on investments (15,838,918)
-------------
Total net assets $ 971,925,984
-------------
NET ASSET VALUE PER SHARE:
(No par value, unlimited number of shares authorized)
Class A (based on $284,591,575/31,787,758 shares) $ 8.95
=============
Class B (based on $36,365,959/4,084,428 shares) $ 8.90
=============
Class C (based on $30,934,470/3,487,324 shares) $ 8.87
=============
Class R (based on $6,511,339/719,707 shares) $ 9.05
=============
Class Y (based on $613,522,641/69,098,873 shares) $ 8.88
=============
MAXIMUM OFFERING PRICE:
Class A ($8.95 [divided by] 95.5%) $ 9.37
=============
30 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended 6/30/07
INVESTMENT INCOME:
Interest $49,527,377
Income from securities loaned, net 1,643
-----------
Total investment income $49,529,020
-----------
EXPENSES:
Management fees $ 4,530,860
Transfer agent fees and expenses
Class A 512,066
Class B 197,373
Class C 96,925
Investor Class 8,517
Class R 18,402
Class Y 109,927
Distribution fees
Class A 627,156
Class B 429,817
Class C 331,310
Class R 23,611
Administrative reimbursements 217,328
Custodian fees 35,225
Registration fees 92,610
Professional fees 74,219
Printing expense 49,682
Fees and expenses of nonaffiliated trustees 13,248
Miscellaneous 6,823
-----------
Total expenses $ 7,375,099
Less management fees waived and expenses
reimbursed by Pioneer Investment Management, Inc. (57,371)
Less fees paid indirectly (30,147)
-----------
Net expenses $ 7,287,581
-----------
Net investment income $42,241,439
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments $ 1,460,971
-----------
Change in net unrealized gain on investments $ 1,322,647
-----------
Net gain on investments $ 2,783,618
-----------
Net increase in net assets resulting from operations $45,025,057
===========
The accompanying notes are an integral part of these financial statements. 31
Pioneer Bond Fund
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
For the Years Ended 6/30/07 and 6/30/06, respectively
Year Ended Year Ended
6/30/07 6/30/06
FROM OPERATIONS:
Net investment income $ 42,241,439 $ 29,202,535
Net realized gain on investments 1,460,971 1,169,174
Change in net unrealized gain (loss) on investments 1,322,647 (38,038,794)
------------- -------------
Net increase (decrease) in net assets resulting
from operations $ 45,025,057 $ (7,667,085)
------------- -------------
DISTRIBUTIONS TO SHAREOWNERS:
Net investment income:
Class A ($0.41 and $0.39 per share, respectively) $ (11,363,122) $ (8,907,383)
Class B ($0.33 and $0.31 per share, respectively) (1,553,503) (1,880,932)
Class C ($0.33 and $0.32 per share, respectively) (1,201,170) (1,376,068)
Investor Class ($0.19 and $0.42 per share,
respectively) (72,030) (181,120)
Class R ($0.39 and $0.38 per share, respectively) (202,353) (91,235)
Class Y ($0.45 and $0.43 per share, respectively) (28,313,263) (19,988,313)
------------- -------------
Total distributions to shareowners $ (42,705,441) $ (32,425,051)
------------- -------------
FROM FUND SHARE TRANSACTIONS:
Net proceeds from sale of shares $ 429,574,722 $ 261,100,711
Shares issued in reorganization - 582,614,812
Reinvestment of distributions 21,415,753 15,956,166
Cost of shares repurchased (303,316,078) (297,471,664)
------------- -------------
Net increase in net assets resulting from
Fund share transactions $ 147,674,397 $ 562,200,025
------------- -------------
Net increase in net assets $ 149,994,013 $ 522,107,889
NET ASSETS:
Beginning of year 821,931,971 299,824,082
------------- -------------
End of year $ 971,925,984 $ 821,931,971
============= =============
Undistributed net investment income $ 587,830 $ 1,208,440
============= =============
32 The accompanying notes are an integral part of these financial statements.
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
'07 Shares '07 Amount '06 Shares '06 Amount
CLASS A
Shares sold 16,132,212 $ 146,930,411 7,982,595 $ 72,834,785
Shares issued in reorganization - - 4,818,649 44,668,880
Shares converted from
Investor Class 375,248 3,433,518 - -
Reinvestment of distributions 894,417 8,121,961 821,518 7,480,071
Less shares repurchased (9,059,043) (82,209,356) (8,698,451) (79,149,510)
---------- -------------- ---------- --------------
Net increase 8,342,834 $ 76,276,534 4,924,311 $ 45,834,226
========== ============== ========== ==============
CLASS B
Shares sold 863,687 $ 7,808,081 2,005,535 $ 18,264,422
Shares issued in reorganization - - 615,934 5,678,911
Reinvestment of distributions 129,753 1,172,183 154,981 1,406,793
Less shares repurchased (2,508,585) (22,644,268) (3,250,901) (29,489,973)
---------- -------------- ---------- --------------
Net decrease (1,515,145) $ (13,664,004) (474,451) $ (4,139,847)
========== ============== ========== ==============
CLASS C
Shares sold 1,354,455 $ 12,182,040 1,905,832 $ 17,283,129
Reinvestment of distributions 91,789 825,700 115,414 1,044,467
Less shares repurchased (2,037,903) (18,339,377) (2,463,706) (22,284,483)
---------- -------------- ---------- --------------
Net decrease (591,659) $ (5,331,637) (442,460) $ (3,956,887)
========== ============== ========== ==============
INVESTOR CLASS
Shares sold 10 $ 264 - $ -
Reinvestment of distributions 6,731 61,143 17,950 163,852
Shares converted to Class A (374,939) (3,433,518) - -
Less shares repurchased (21,047) (190,426) (106,887) (976,139)
---------- -------------- ---------- --------------
Net decrease (389,245) $ (3,562,537) (88,937) $ (812,287)
========== ============== ========== ==============
CLASS R
Shares sold 557,384 $ 5,118,772 288,594 $ 2,667,309
Reinvestment of distributions 16,184 148,483 5,418 49,620
Less shares repurchased (192,209) (1,763,445) (88,228) (812,829)
---------- -------------- ---------- --------------
Net increase 381,359 $ 3,503,810 205,784 $ 1,904,100
========== ============== ========== ==============
CLASS Y
Shares sold 28,228,870 $ 254,101,636 16,586,060 $ 150,051,066
Shares issued in reorganization - - 57,855,111 532,267,021
Reinvestment of distributions 1,229,993 11,086,283 645,641 5,811,363
Less shares repurchased (19,424,424) (174,735,688) (18,275,250) (164,758,730)
----------- -------------- ----------- --------------
Net increase 10,034,439 $ 90,452,231 56,811,562 $ 523,370,720
========== ============== ========== ==============
The accompanying notes are an integral part of these financial statements. 33
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/07 6/30/06 6/30/05 6/30/04 6/30/03
CLASS A
Net asset value, beginning of period $ 8.89 $ 9.40 $ 9.18 $ 9.41 $ 8.89
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment income $ 0.40 $ 0.35 $ 0.40 $ 0.41 $ 0.45
Net realized and unrealized gain (loss)
on investments 0.07 (0.47) 0.29 (0.14) 0.53
--------- --------- --------- --------- ---------
Net increase (decrease) from investment operations $ 0.47 $ (0.12) $ 0.69 $ 0.27 $ 0.98
Distributions to shareowners:
Net investment income (0.41) (0.39) (0.47) (0.50) (0.46)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ 0.06 $ (0.51) $ 0.22 $ (0.23) $ 0.52
--------- --------- --------- --------- ---------
Net asset value, end of period $ 8.95 $ 8.89 $ 9.40 $ 9.18 $ 9.41
========= ========= ========= ========= =========
Total return* 5.31% (1.25)% 7.64% 2.98% 11.38%
Ratio of net expenses to average net assets+ 1.00% 1.00% 1.05% 1.14% 1.20%
Ratio of net investment income to average net assets+ 4.48% 3.91% 4.27% 4.42% 5.02%
Portfolio turnover rate 31% 60% 49% 63% 48%
Net assets, end of period (in thousands) $ 284,592 $ 208,454 $ 174,055 $ 160,421 $ 183,338
Ratios with no assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.00% 1.11% 1.18% 1.14% 1.20%
Net investment income 4.48% 3.80% 4.14% 4.42% 5.02%
Ratios with assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.00% 1.00% 1.05% 1.14% 1.20%
Net investment income 4.48% 3.91% 4.27% 4.42% 5.02%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
34
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/07 6/30/06 6/30/05 6/30/04 6/30/03
CLASS B
Net asset value, beginning of period $ 8.85 $ 9.36 $ 9.14 $ 9.37 $ 8.87
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment income $ 0.33 $ 0.27 $ 0.32 $ 0.33 $ 0.37
Net realized and unrealized gain (loss) on investments 0.05 (0.47) 0.28 (0.14) 0.53
--------- --------- --------- --------- ---------
Net increase (decrease) from investment operations $ 0.38 $ (0.20) $ 0.60 $ 0.19 $ 0.90
Distributions to shareowners:
Net investment income (0.33) (0.31) (0.38) (0.42) (0.40)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ 0.05 $ (0.51) $ 0.22 $ (0.23) $ 0.50
--------- --------- --------- --------- ---------
Net asset value, end of period $ 8.90 $ 8.85 $ 9.36 $ 9.14 $ 9.37
========= ========= ========= ========= =========
Total return* 4.26% (2.14)% 6.72% 2.04% 10.44%
Ratio of net expenses to average net assets+ 1.92% 1.90% 1.95% 1.98% 2.02%
Ratio of net investment income to average net assets+ 3.55% 3.06% 3.39% 3.55% 4.22%
Portfolio turnover rate 31% 60% 49% 63% 48%
Net assets, end of period (in thousands) $ 36,366 $ 49,552 $ 56,828 $ 57,774 $ 77,367
Ratios with no assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 2.02% 1.99% 2.02% 1.98% 2.02%
Net investment income 3.45% 2.97% 3.32% 3.55% 4.22%
Ratios with assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.90% 1.90% 1.95% 1.98% 2.02%
Net investment income 3.57% 3.06% 3.39% 3.55% 4.22%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
35
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/07 6/30/06 6/30/05 6/30/04 6/30/03
CLASS C
Net asset value, beginning of period $ 8.81 $ 9.32 $ 9.11 $ 9.31 $ 8.83
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment income $ 0.33 $ 0.28 $ 0.32 $ 0.33 $ 0.37
Net realized and unrealized gain (loss) on investments 0.06 (0.47) 0.28 (0.14) 0.51
--------- --------- --------- --------- ---------
Net increase (decrease) from investment operations $ 0.39 $ (0.19) $ 0.60 $ 0.19 $ 0.88
Distributions to shareowners:
Net investment income (0.33) (0.32) (0.39) (0.39) (0.40)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ 0.06 $ (0.51) $ 0.21 $ (0.20) $ 0.48
--------- --------- --------- --------- ---------
Net asset value, end of period $ 8.87 $ 8.81 $ 9.32 $ 9.11 $ 9.31
========= ========= ========= ========= =========
Total return* 4.39% (2.08)% 6.68% 2.11% 10.28%
Ratio of net expenses to average net assets+ 1.85% 1.89% 1.92% 1.97% 2.16%
Ratio of net investment income to average net assets+ 3.62% 3.07% 3.24% 3.59% 4.05%
Portfolio turnover rate 31% 60% 49% 63% 48%
Net assets, end of period (in thousands) $ 30,934 $ 35,942 $ 42,160 $ 27,545 $ 29,777
Ratios with no assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.85% 1.89% 1.92% 1.97% 2.16%
Net investment income 3.62% 3.07% 3.24% 3.59% 4.05%
Ratios with assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.84% 1.89% 1.91% 1.97% 2.16%
Net investment income 3.63% 3.07% 3.25% 3.59% 4.05%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, the complete redemption of the
investment at net asset value at the end of each period, and no sales
charges. Total return would be reduced if sales charges were taken into
account.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
36
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
7/1/06 to Year Ended 12/11/04 to
12/10/06 (c) 6/30/06 6/30/05 (b)
INVESTOR CLASS
Net asset value, beginning of period $ 8.89 $ 9.40 $ 9.40
------- ------- -------
Increase (decrease) from investment operations:
Net investment income $ 0.19 $ 0.38 $ 0.22
Net realized and unrealized gain (loss)
on investments 0.27 (0.47) 0.04
------- ------- -------
Net increase (decrease) from
investment operations $ 0.46 $ (0.09) $ 0.26
Distributions to shareowners:
Net investment income (0.19) (0.42) (0.26)
------- ------- -------
Net decrease in net asset value $ 0.27 $ (0.51) $ 0.00
------- ------- -------
Net asset value, end of period $ 9.16 $ 8.89 $ 9.40
======= ======= =======
Total return* 5.20% (0.98)% 2.84%(a)
Ratio of net expenses to average net assets+ 0.76%** 0.74% 0.74%**
Ratio of net investment income to average
net assets+ 4.43%** 4.24% 4.43%**
Portfolio turnover rate 31%** 60% 49%(a)
Net assets, end of period (in thousands) $ - $ 3,462 $ 4,496
Ratios with no assumption of expenses by PIM
and no reduction for fees paid indirectly:
Net expenses 1.12%** 0.94% 0.89%**
Net investment income 4.07%** 4.04% 4.28%**
Ratios with assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.73%** 0.74% 0.74%**
Net investment income 4.46%** 4.24% 4.43%**
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
(a) Not annualized.
(b) Investor class commenced operations on December 11, 2004
(c) Investor class shares were converted to Class A shares on December 10, 2006
The accompanying notes are an integral part of these financial statements. 37
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended 4/1/03 (a)
6/30/07 6/30/06 6/30/05 6/30/04 to 6/30/03
CLASS R
Net asset value, beginning of period $ 8.99 $ 9.50 $ 9.28 $ 9.50 $ 9.19
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment income $ 0.39 $ 0.34 $ 0.36 $ 0.47 $ 0.10
Net realized and unrealized gain (loss) on investments 0.06 (0.47) 0.30 (0.17) 0.32
--------- --------- --------- --------- ---------
Net increase (decrease) from investment operations $ 0.45 $ (0.13) $ 0.66 $ 0.30 $ 0.42
Distributions to shareowners:
Net investment income (0.39) (0.38) (0.44) (0.52) (0.11)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ 0.06 $ (0.51) $ 0.22 $ (0.22) $ 0.31
--------- --------- --------- --------- ---------
Net asset value, end of period $ 9.05 $ 8.99 $ 9.50 $ 9.28 $ 9.50
========= ========= ========= ========= =========
Total return* 5.04% (1.43)% 7.27% 3.20% 4.55%(b)
Ratio of net expenses to average net assets+ 1.25% 1.25% 1.31% 1.32% 1.42%**
Ratio of net investment income to average net assets+ 4.24% 3.50% 3.77% 4.71% 4.13%**
Portfolio turnover rate 31% 60% 49% 63% 48%(b)
Net assets, end of period (in thousands) $ 6,511 $ 3,042 $ 1,259 $ 345 $ 1
Ratios with no assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 1.44% 1.46% 1.43% 1.32% 1.42%**
Net investment income 4.05% 3.29% 3.65% 4.71% 4.13%**
Ratios with assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 1.25% 1.25% 1.31% 1.32% 1.42%**
Net investment income 4.24% 3.50% 3.77% 4.71% 4.13%**
(a) Class R shares were first publicly offered on April 1, 2003.
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period.
** Annualized.
+ Ratio with no reduction for fees paid indirectly.
(b) Not annualized.
The accompanying notes are an integral part of these financial statements.
38
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
6/30/07 6/30/06 6/30/05 6/30/04 6/30/03
CLASS Y
Net asset value, beginning of period $ 8.83 $ 9.33 $ 9.12 $ 9.35 $ 8.87
--------- --------- --------- --------- ---------
Increase (decrease) from investment operations:
Net investment income $ 0.44 $ 0.39 $ 0.44 $ 0.46 $ 0.51
Net realized and unrealized gain (loss) on investments 0.06 (0.46) 0.28 (0.14) 0.51
--------- --------- --------- --------- ---------
Net increase (decrease) from investment operations $ 0.50 $ (0.07) $ 0.72 $ 0.32 $ 1.02
Distributions to shareowners:
Net investment income (0.45) (0.43) (0.51) (0.55) (0.54)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset value $ 0.05 $ (0.50) $ 0.21 $ (0.23) $ 0.48
--------- --------- --------- --------- ---------
Net asset value, end of period $ 8.88 $ 8.83 $ 9.33 $ 9.12 $ 9.35
========= ========= ========= ========= =========
Total return* 5.65% (0.77)% 8.07% 3.48% 11.86%
Ratio of net expenses to average net assets+ 0.57% 0.58% 0.61% 0.58% 0.67%
Ratio of net investment income to average net assets+ 4.89% 4.20% 4.43% 5.05% 5.54%
Portfolio turnover rate 31% 60% 49% 63% 48%
Net assets, end of period (in thousands) $ 613,523 $ 521,480 $ 21,027 $ 13,617 $ 7,719
Ratios with no assumption of expenses by PIM and
no reduction for fees paid indirectly:
Net expenses 0.57% 0.58% 0.61% 0.58% 0.67%
Net investment income 4.89% 4.20% 4.43% 5.05% 5.54%
Ratios with assumption of expenses by PIM and
reduction for fees paid indirectly:
Net expenses 0.57% 0.58% 0.61% 0.58% 0.67%
Net investment income 4.89% 4.20% 4.43% 5.05% 5.54%
* Assumes initial investment at net asset value at the beginning of each
period, reinvestment of all distributions, and the complete redemption of
the investment at net asset value at each end of each period.
+ Ratio with no reduction for fees paid indirectly.
The accompanying notes are an integral part of these financial statements.
39
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/07
- --------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies
Pioneer Bond Fund (the Fund) is a Delaware statutory trust registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objectives of the Fund are to seek current income
consistent with preservation of capital.
The Trustees have authorized the issuance of five classes of shares of the Fund.
The Fund offers five classes of shares designated as Class A, Class B, Class C,
Class R, and Class Y shares. Class R shares were first publicly offered April 1,
2003. As planned, on December 10, 2006 Investor Class shares were converted to
Class A shares. Each class of shares represents an interest in the same
portfolio of investments of the Fund and has equal rights to voting,
redemptions, dividends and liquidation, except that each class of shares can
bear different transfer agent and distributions fees and has exclusive voting
rights with respect to the distribution plans that have been adopted by Class A,
Class B, Class C, and Class R shareowners, respectively. There is no
distribution plan for Investor Class and Class Y shares.
At times, the Fund's investments may represent industries or industry sectors
that are interrelated or have common risks, making it more susceptible to any
economic, political, or regulatory developments or other risks affecting those
industries and sectors. Information regarding the Fund's principal risk is
contained in the Fund's prospectus(es). Please refer to those documents when
considering the Fund's risks.
The Fund's financial statements have been prepared in conformity with U.S.
generally accepted accounting principles that require the management of the Fund
to, among other things, make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the financial statements, and the reported amounts of
income, expenses and gains and losses on investments during the reporting
period. Actual results could differ from those estimates. The following is a
summary of significant accounting policies followed by the Fund in the
preparation of its financial statements, which are consistent with those
policies generally accepted in the investment company industry:
A. Security Valuation
Security transactions are recorded as of trade date. Securities are valued
at prices supplied by independent pricing services, which consider such
factors as Treasury spreads, yields, maturities and
40
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ratings. Valuations may be supplemented by dealers and other sources, as
required. Securities for which there are no other readily available
valuation methods are valued at their fair values as determined by, or
under the direction of the Board of Trustees. At June 30, 2007 there were
no securities fair valued. Principal amounts of mortgage-backed securities
are adjusted for monthly paydowns. Temporary cash investments are valued at
cost which approximates market value.
All discounts/premiums on debt securities are accreted/amortized for
financial reporting purposes over the life of the respective securities,
and are included in interest income. Market discount and premium are
accreted or amortized daily. Premiums and discounts related to certain
mortgage-backed securities are amortized or accreted in proportion to the
underlying monthly paydowns. Interest income is recorded on the accrual
basis.
Gains and losses on sales of investments are calculated on the identified
cost method for both financial reporting and federal income tax purposes.
B. Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income and net realized capital gains, if any, to its
shareowners. Therefore, no federal income tax provision is required.
The amounts and characterizations of distributions to shareowners for
financial reporting purposes are determined in accordance with federal
income tax rules. Therefore, the sources of the Fund's distributions may be
shown in the accompanying financial statements as either from or in excess
of net investment income or net realized gain on investment transactions,
or from paid-in capital, depending on the type of book/tax differences that
may exist.
At June 30, 2007 the Fund had a net capital loss carryforward of $5,040,410
of which the following amounts will expire between 2009 and 2015 if not
utilized; $1,088,447 in 2009, $7,580 in 2009, $77,493 in 2010, $1,084,416
in 2011, $304,529 in 2013 and $2,477,945 in 2015.
41
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/07 (continued)
- --------------------------------------------------------------------------------
At June 30, 2007, the Fund reclassified $156,608 to decrease undistributed
net investment income, $205,050 to decrease paid-in capital and $361,658 to
decrease accumulated net realized loss on investments to reflect permanent
book/tax differences. This reclassification has no impact on the net assets
of the Fund and presents the Fund's capital accounts on a tax basis.
The tax character of distributions paid during the years ended June 30,
2007 and 2006 were as follows:
- --------------------------------------------------------------------------------
2007 2006
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $42,705,441 $32,425,051
----------- -----------
Total $42,705,441 $32,425,051
=========== ===========
- --------------------------------------------------------------------------------
The following shows the components of distributable earnings on a federal
income tax basis at June 30, 2007.
- --------------------------------------------------------------------------------
2007
- --------------------------------------------------------------------------------
Undistributed ordinary income $ 2,562,258
Capital loss carryforward (5,040,410)
Current year dividends payable (1,974,428)
Unrealized depreciation (14,627,245)
------------
Total $(19,079,825)
============
- --------------------------------------------------------------------------------
The difference between book basis and tax-basis unrealized appreciation is
attributable to the tax treatment of amortization.
C. Fund Shares
The Fund records sales and repurchases of its shares as of trade date.
Pioneer Funds Distributor, Inc. (PFD), the principal underwriter for the
Fund and a wholly owned indirect subsidiary of UniCredito Italiano S.p.A.,
(UniCredito Italiano), earned $18,092 in underwriting commissions on the
sale of Class A shares during the year ended June 30, 2007.
42
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
D. Class Allocations
Distribution fees are calculated based on the average daily net asset value
attributable to Class A, Class B, Class C, and Class R shares of the Fund,
respectively. Investor Class and Class Y shares are not subject to a
distribution plan. Shareowners of each class share all expenses and fees
paid to the transfer agent, Pioneer Investment Management Shareholder
Services, Inc. (PIMSS), for its services, which are allocated based on the
number of accounts in each class and the ratable allocation of related
out-of-pocket expenses (see Note 3). Income, common expenses, and realized
and unrealized gains and losses are calculated at the Fund level and
allocated daily to each class of shares based on the respective percentage
of adjusted net assets at the beginning of the day.
The Fund declares as daily dividends substantially all of its net
investment income. All dividends are paid on a monthly basis. Short-term
capital gain distributions, if any, may be declared with the daily
dividends. Distributions to shareowners are recorded as of the ex-dividend
date. Distributions paid by the Fund with respect to each class of shares
are calculated in the same manner, at the same time, and in the same
amount, except that each class of shares can bear different transfer agent
and distribution fees.
E. Repurchase Agreements
With respect to repurchase agreements entered into by the Fund, the value
of the underlying securities (collateral), including accrued interest
received from the counterparties, is required to be at least equal to or in
excess of the value of the repurchase agreement at the time of purchase.
The collateral for all repurchase agreements is held in safekeeping in the
customer-only account of the Fund's custodian, or subcustodians. The Fund's
investment adviser, Pioneer Investment Management, Inc. (PIM), is
responsible for determining that the value of the collateral remains at
least equal to the repurchase price.
F. Securities Lending
The Fund lends securities in its portfolio to certain broker-dealers or
other institutional investors, with the Fund's custodian acting as the
lending agent. When entering into a loan, the Fund receives collateral,
which is maintained by the custodian and earns income in the form of
negotiated lenders' fees. The Fund also continues to
43
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/07 (continued)
- --------------------------------------------------------------------------------
receive interest or payments in lieu of dividends on the securities loaned.
Gain or loss on the fair value of the loaned securities that may occur
during the term of the loan will be for the account of the Fund. The loans
are secured by collateral of at least 102% at all times, of the fair value
of the securities loaned. The amount of the collateral will be adjusted
daily to reflect any price fluctuation in the value of loaned securities.
The Fund has the right under the lending agreements to recover the
securities on loan from the borrower on demand. The Fund invests cash
collateral in the Securities Lending Investment Fund, which is sponsored by
Brown Brothers Harriman & Co., the Fund's custodian.
2. Management Agreement
PIM, a wholly owned indirect subsidiary of UniCredito Italiano, manages the
Fund's portfolio. Management fees are calculated daily at the annual rate of
0.50% of the Fund's average daily net assets. For the year ended June 30, 2007,
the net management fee was equivalent to 0.50%.
Effective November 1, 2006, PIM has agreed to limit ordinary operating expenses
to the extent required to reduce Fund expenses to 1.00%, 1.90%, 1.90% and 1.25%
of the average daily net assets attributable to Class A, Class B, Class C and
Class R shares, respectively. Class Y shares do not have an expense limitation.
These expense limitations are in effect through November 1, 2009 for Class A
shares and through November 1, 2008 for Class B, Class C and Class R shares. PIM
expects to continue its limitation of expenses unless the expense limit
agreement with the Fund is terminated pursuant to the terms of the expense limit
agreement. However, there can be no assurance that PIM will extend the expense
limitation beyond November 1, 2009 for Class A shares and November 1, 2008 for
Class B, Class C and Class R shares. The Fund may terminate the expense
limitation agreement at any time; provided, however, that the Board of Trustees
would not take such action unless it determined termination of the agreement be
in the best interests of the Fund and its shareowners.
Through December 10, 2006, PIM contractually agreed not to impose all or a
portion of its management fee and to assume other operating expenses (excluding
taxes, commissions, interest and extraordinary expenses) of the Fund to the
extent necessary to limit Investor Class expenses to 0.74% of the average daily
net assets attributable to Investor Class shares.
44
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In addition, under the management and administration agreements, certain other
services and costs, including accounting, regulatory reporting, and insurance
premiums, are paid by the Fund. At June 30, 2007, $67,978 was payable to PIM
related to management fees, administrative costs and certain other services, and
is included in due to affiliates.
3. Transfer Agent
PIMSS, a wholly owned indirect subsidiary of UniCredito Italiano, provides
substantially all transfer agent and shareowner services to the Fund at
negotiated rates. Included in due to affiliates is $139,097 in transfer agent
fees payable to PIMSS at June 30, 2007.
4. Distribution and Service Plans
The Fund adopted a Plan of Distribution with respect to each class of shares
(Class A Plan, Class B Plan, Class C Plan and Class R Plan) in accordance with
Rule 12b-1 of the Investment Company Act of 1940. Pursuant to the Class A Plan,
the Fund pays PFD a service fee of up to 0.25% of the average daily net assets
attributable to Class A shares in reimbursement of its actual expenditures to
finance activities primarily intended to result in the sale of Class A shares.
Pursuant to the Class B Plan and the Class C Plan, the Fund pays PFD 1.00% of
the average daily net assets attributable to each class of shares. The fee
consists of a 0.25% service fee and a 0.75% distribution fee both paid as
compensation for personal services and/or account maintenance services or
distribution services with regard to Class B and Class C shares. Pursuant to the
Class R Plan, the Fund pays PFD 0.50% of the average daily net assets
attributable to Class R shares for distribution services paid as compensation
for personal services and/or account maintenance services or distribution
services. The Fund also has adopted a separate service plan for Class R shares
(Service Plan). The Service Plan authorizes the Fund to pay securities dealers,
plan administrators or other service organizations that agree to provide certain
services to retirement plans or plan participants holding shares of the Fund a
service fee of up to 0.25% of the Fund's average daily net assets attributable
to Class R shares held by such plans. Included in due to affiliates is $7,741 in
distribution fees payable to PFD at June 30, 2007.
45
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/07 (continued)
- --------------------------------------------------------------------------------
In addition, redemptions of Class A, Class B and Class C shares may be subject
to a contingent deferred sales charge (CDSC). A CDSC of 1.00% may be imposed on
redemptions of certain net asset value purchases of Class A shares within 18
months of purchase. Class B shares that are redeemed within five years of
purchase are subject to a CDSC at declining rates beginning at 4.00%, based on
the lower of cost or market value of shares being redeemed. Redemptions of Class
C shares within one year of purchase are subject to a CDSC of 1.00%. Proceeds
from the CDSCs are paid to PFD. For the year ended June 30, 2007, $114,993 in
CDSCs were paid to PFD.
5. Expense Offset Arrangements
The Fund has entered into certain expense offset arrangements with PIMSS
resulting in a reduction in the Fund's total expenses due to interest earned on
cash held by PIMSS. For the year ended June 30, 2007, the Fund's expenses were
reduced $30,147 under such arrangements.
6. New Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions have a
"more-likely-than-not" probability of being sustained by the applicable tax
authority. Tax positions deemed to not meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the reporting period in which
they are realized. Adoption of FIN 48 is required for fiscal years beginning
after December 15, 2006 and is to be applied to all open tax years as of no
later than June 30, 2008. At this time, management is evaluating the
implications of FIN 48 and any impact in the financial statements has not yet
been determined.
In addition, in September 2006, Statement of Financial Accounting Standards No.
157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal
years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements.
46
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Management is currently evaluating the impact the adoption of SFAS 157 will have
on the Fund's financial statement disclosures.
7. Merger Information
On September 22, 2005, beneficial owners of Amsouth High Quality Bond approved a
proposed Agreement and Plan of Reorganization that provided for the merger
listed below. This tax-free reorganization was accomplished on September 23,
2005, by exchanging all of Amsouth High Quality Bond's net assets in Class A,
Class B and Class I for Pioneer Fund's Shares, based on Pioneer Fund's Class A,
Class B and Class Y shares' ending net asset value, respectively. The following
charts show the details of the reorganizations as of that closing date ("Closing
Date"):
47
Pioneer Bond Fund
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 6/30/07 (continued)
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Pioneer Amsouth Pioneer
Bond Fund High Quality Bond Bond Fund
(Pre-Reorganization) (Pre-Reorganization) (Post-Reorganization)
- -------------------------------------------------------------------------------------
Net Assets
Class A $178,317,842 $ 44,668,880 $222,986,722
Class B $ 58,181,919 $ 5,678,911 $ 63,860,830
Class C $ 42,851,287 $ -- $ 42,851,287
Investor Class $ 4,095,750 $ -- $ 4,095,750
Class R $ 1,678,306 $ -- $ 1,678,306
Class I $ -- $532,267,021 $ --
Class Y $ 27,130,385 $ -- $559,397,406
------------ ------------ ------------
Total Net
Assets $312,255,489 $582,614,812 $894,870,301
============ ============ ============
Shares
Outstanding
Class A 19,242,520 4,085,199 24,061,169
Class B 6,307,434 520,998 6,923,368
Class C 4,661,389 4,661,389
Investor Class 441,773 441,773
Class R 179,118 179,118
Class I 48,671,755
Class Y 2,947,361 60,802,472
Total Shares
Outstanding 33,779,595 53,277,952 97,069,289
Shares Issued
in Reorganization
Class A 4,818,649
Class B 615,934
Class Y 57,855,111
- -------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Unrealized Accumulated
Appreciation Gain on
on Closing Date Closing Date
- --------------------------------------------------------------------------------
Amsouth High Quality Bond $15,276,095 $ 2,768,070
=========== ===========
- --------------------------------------------------------------------------------
48
Pioneer Bond Fund
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and the Shareowners of
Pioneer Bond Fund:
We have audited the accompanying statement of assets and liabilities of Pioneer
Bond Fund (the "Fund"), including the schedule of investments, as of June 30,
2007, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods indicated therein.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Fund's internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Fund's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of June 30, 2007, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Pioneer Bond Fund at June 30, 2007, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
indicated therein, in conformity with U.S. generally accepted accounting
principles.
/s/ Ernst & Young LLP
Boston, Massachusetts
August 15, 2007
49
Pioneer Bond Fund
- --------------------------------------------------------------------------------
TRUSTEES, OFFICERS AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
Investment Adviser
Pioneer Investment Management, Inc.
Custodian
Brown Brothers Harriman & Co.
Independent Registered Public Accounting Firm
Ernst & Young LLP
Principal Underwriter
Pioneer Funds Distributor, Inc.
Legal Counsel
Wilmer Cutler Pickering Hale and Dorr LLP
Shareowner Services and Transfer Agent
Pioneer Investment Management Shareholder Services, Inc.
Trustees and Officers
The Fund's Board of Trustees provides broad supervision over the Fund's affairs.
The officers of the Fund are responsible for the Fund's operations. The Fund's
Trustees and officers are listed below, together with their principal
occupations during the past five years. Trustees who are interested persons of
the Fund within the meaning of the 1940 Act are referred to as Interested
Trustees. Trustees who are not interested persons of the Fund are referred to as
Independent Trustees. Each of the Trustees (except Mr. Bock, Mr. West and Mr.
Kingsbury) serves as a trustee of each of the 83 U.S. registered investment
portfolios for which Pioneer serves as investment adviser (the "Pioneer Funds").
Mr. Bock serves as Trustee of 82 of the 83 Pioneer Funds. The address for all
Interested Trustees and all officers of the fund is 60 State Street, Boston,
Massachusetts 02109.
The Fund's statement of additional information provides more detailed
information regarding the Fund's Trustees and is available upon request, without
charge, by calling 1-800-225-6292.
Proxy Voting Policies and Procedures of the Fund are available without charge,
upon request, by calling our toll free number (1-800-225-6292). Information
regarding how the Fund voted proxies relating to portfolio securities during the
most recent 12-month period ended June 30 is publicly available to shareowners
at www.pioneerinvestments.com and on the SEC's web site at http://www.sec.gov.
50
Pioneer Bond Fund
- --------------------------------------------------------------------------------
INTERESTED TRUSTEES
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Trustee
John F. Cogan, Jr. (81)* Chairman of the Trustee since 1982. Deputy Chairman and a Director of None
Board, Trustee and Serves until a Pioneer Global Asset Management S.p.A.
President successor trustee ("PGAM"); Non-Executive Chairman and a
is elected or earlier Director of Pioneer Investment
retirement or removal. Management USA Inc. ("PIM-USA");
Chairman and a Director of Pioneer;
Chairman and Director of Pioneer
Institutional Asset Management, Inc.
(since 2006); Director of Pioneer
Alternative Investment Management
Limited (Dublin); President and a
Director of Pioneer Alternative
Investment Management (Bermuda)
Limited and affiliated funds; Director
of PIOGLOBAL Real Estate Investment
Fund (Russia) (until June 2006);
Director of Nano-C, Inc. (since 2003);
Director of Cole Management Inc.
(since 2004); Director of Fiduciary
Counseling, Inc.; President and
Director of Pioneer Funds Distributor,
Inc. ("PFD") (until May 2006);
President of all of the Pioneer Funds;
and Of Counsel, Wilmer Cutler
Pickering Hale and Dorr LLP (counsel
to PIM-USA and the Pioneer Funds)
- -----------------------------------------------------------------------------------------------------------------------------------
51
Pioneer Bond Fund
- ----------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ----------------------------------------------------------------------------
Name, Age and Positions Held Length of Service Principal Occupation Other Directorships
Address With the Fund and Term of Office During Past Five Years Held by this Trustee
David R. Bock (63) Trustee Trustee since 2005. Executive Vice President and Chief Director of The
3050 K. Street NW, Serves until a Financial Officer, I-trax, Inc. Enterprise Social
Washington, DC 20007 successor trustee (publicly traded health care services Investment Company
is elected or earlier company) (2004 - present); Partner, (privately-held
retirement or removal. Federal City Capital Advisors affordable housing
(boutique merchant bank) (1997 to finance company);
2004); and Executive Vice President and Director of New
and Chief Financial Officer, Pedestal York Mortgage Trust
Inc. (internet-based mortgage trading (publicly traded
company) (2000 - 2002) mortgage REIT)
- -----------------------------------------------------------------------------------------------------------------------------------
Mary K. Bush (59) Trustee Trustee since 1997. President, Bush International, LLC Director of Brady
3509 Woodbine Street, Serves until a (international financial advisory Corporation
Chevy Chase, MD 20815 successor trustee firm) (industrial
is elected or earlier identification and
retirement or removal. specialty coated
material products
manufacturer);
Director of Briggs &
Stratton Co. (engine
manufacturer);
Director of UAL
Corporation (airline
holding company) and
Director of Mantech
International
Corporation
(national security,
defense, and
intelligence
technology firm)
- -----------------------------------------------------------------------------------------------------------------------------------
Margaret B.W. Graham (60) Trustee Trustee since 1990. Founding Director, Vice President and None
1001 Sherbrooke Street West, Serves until a Corporate Secretary, The Winthrop
Montreal, Quebec, Canada successor trustee Group, Inc. (consulting firm); and
H3A 1G5 is elected or earlier Desautels Faculty of Management,
retirement or removal. McGill University
- -----------------------------------------------------------------------------------------------------------------------------------
52
Pioneer Bond Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Name, Age and Positions Held Length of Service Principal Occupation Other Directorships
Address With the Fund and Term of Office During Past Five Years Held by this Trustee
Thomas J. Perna (56) Trustee Trustee since 2006. Private investor (2004 - present); and Director of
89 Robbins Avenue, Serves until a Senior Executive Vice President, The Quadriserv Inc.
Berkeley Heights, successor trustee Bank of New York (financial and (technology products
NJ 07922 is elected or earlier securities services) (1986 - 2004) for securities
retirement or removal. lending industry)
- -----------------------------------------------------------------------------------------------------------------------------------
Marguerite A. Piret (59) Trustee Trustee since 1982. President and Chief Executive Officer, Director of New
200 State Street, Serves until a Newbury, Piret & Company, Inc. America High Income
12th Floor, successor trustee (investment banking firm) Fund, Inc.
Boston, MA 02108 is elected or earlier (closed-end
retirement or removal. investment company)
- -----------------------------------------------------------------------------------------------------------------------------------
John Winthrop (71) Trustee Trustee since 1985. President, John Winthrop & Co., Inc. None
One North Adgers Wharf, Serves until a (private investment firm)
Charleston, SC 29401 successor trustee
is elected or earlier
retirement or removal.
- -----------------------------------------------------------------------------------------------------------------------------------
53
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Officer
Daniel K. Kingsbury (48) Executive Vice Since March 2007. Director, CEO and President of None
President Serves until a Pioneer Investment Management USA
successor trustee Inc.; Pioneer Investment Management,
is elected or earlier Inc. and Pioneer Institutional Asset
retirement or removal. Management, Inc. (since March 2007);
Executive Vice President of all of
the Pioneer Funds (since March
2007); Director of Pioneer Global
Asset Management S.p.A. (since March
2007); Head of New Markets Division,
Pioneer Global Asset Management
S.p.A. (2000 - 2007)
- -----------------------------------------------------------------------------------------------------------------------------------
Dorothy E. Bourassa (59) Secretary Since 2003. Serves Secretary of PIM-USA; Senior Vice None
at the discretion President - Legal of Pioneer;
of the Board Secretary/Clerk of most of PIM-USA's
subsidiaries; and Secretary of all
of the Pioneer Funds since September
2003 (Assistant Secretary from
November 2000 to September 2003)
- -----------------------------------------------------------------------------------------------------------------------------------
Christopher J. Kelley (42) Assistant Secretary Since 2003. Serves Vice President and Senior Counsel of None
at the discretion Pioneer since July 2002; Vice
of the Board President and Senior Counsel of
BISYS Fund Services, Inc. (April
2001 to June 2002); Senior Vice
President and Deputy General Counsel
of Funds Distributor, Inc. (July
2000 to April 2001); and Assistant
Secretary of all of the Pioneer
Funds since September 2003
- -----------------------------------------------------------------------------------------------------------------------------------
Christopher P. Harvey (46) Assistant Secretary Since 2006. Serves Partner, Wilmer Cutler Pickering None
at the discretion Hale and Dorr LLP; and Assistant
of the Board Secretary of all of the Pioneer
Funds since July 2006
- -----------------------------------------------------------------------------------------------------------------------------------
Vincent Nave (62) Treasurer Since 2000. Serves Vice President - Fund Accounting, None
at the discretion Administration and Controllership
of the Board Services of Pioneer; and Treasurer
of all of the Pioneer Funds
- -----------------------------------------------------------------------------------------------------------------------------------
54
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Officer
Mark E. Bradley (47) Assistant Treasurer Since 2004. Serves Deputy Treasurer of Pioneer since None
at the discretion 2004; Treasurer and Senior Vice
of the Board President, CDC IXIS Asset Management
Services from 2002 to 2003; and
Assistant Treasurer of all of the
Pioneer Funds since November 2004
- -----------------------------------------------------------------------------------------------------------------------------------
Luis I. Presutti (42) Assistant Treasurer Since 2000. Serves Assistant Vice President - Fund None
at the discretion Accounting, Administration and
of the Board Controllership Services of Pioneer;
and Assistant Treasurer of all of
the Pioneer Funds
- -----------------------------------------------------------------------------------------------------------------------------------
Gary Sullivan (49) Assistant Treasurer Since 2002. Serves Fund Accounting Manager - Fund None
at the discretion Accounting, Administration and
of the Board Controllership Services of Pioneer;
and Assistant Treasurer of all of
the Pioneer Funds since May 2002
- -----------------------------------------------------------------------------------------------------------------------------------
Katherine Kim Assistant Treasurer Since 2003. Serves Fund Administration Manager - Fund None
Sullivan (33) at the discretion Accounting, Administration and
of the Board Controllership Services since June
2003; Assistant Vice President -
Mutual Fund Operations of State
Street Corporation from June 2002 to
June 2003 (formerly Deutsche Bank
Asset Management); Pioneer Fund
Accounting, Administration and
Controllership Services (Fund
Accounting Manager from August 1999
to May 2002); and Assistant
Treasurer of all of the Pioneer
Funds since September 2003
- -----------------------------------------------------------------------------------------------------------------------------------
55
Pioneer Bond Fund
- --------------------------------------------------------------------------------
FUND OFFICERS
- --------------------------------------------------------------------------------
Positions Held Length of Service Principal Occupation Other Directorships
Name and Age With the Fund and Term of Office During Past Five Years Held by this Officer
Teri W. Anderholm (47) Chief Compliance Since January 2007. Chief Compliance Officer of Pioneer None
Officer Serves at the since December 2006 and of all the
discretion of Pioneer Funds since January 2007;
the Board Vice President and Compliance
Officer, MFS Investment Management
(August 2005 to December 2006);
Consultant, Fidelity Investments
(February 2005 to July 2005):
Independent Consultant (July 1997 to
February 2005)
- -----------------------------------------------------------------------------------------------------------------------------------
*Mr. Cogan is an Interested Trustee because he is an officer or director of the fund's investment adviser and certain of its
affiliates.
The outstanding capital stock of PFD, Pioneer and PIMSS is indirectly wholly owned by UniCredito Italiano S.p.A. ("UniCredito
Italiano"), one of the largest banking groups in Italy. Pioneer, the fund's investment adviser, provides investment management and
financial services to mutual funds, institutional and other clients.
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HOW TO CONTACT PIONEER
- --------------------------------------------------------------------------------
We are pleased to offer a variety of convenient ways for you to contact us for
assistance or information.
Call us for:
Account Information, including existing accounts,
new accounts, prospectuses, applications
and service forms 1-800-225-6292
FactFone(SM) for automated fund yields, prices,
account information and transactions 1-800-225-4321
Retirement plans information 1-800-622-0176
Telecommunications Device for the Deaf (TDD) 1-800-225-1997
Write to us:
PIMSS, Inc.
P.O. Box 55014
Boston, Massachusetts 02205-5014
Our toll-free fax 1-800-225-4240
Our internet e-mail address ask.pioneer@pioneerinvestments.com
(for general questions about Pioneer only)
Visit our web site: www.pioneerinvestments.com
Before investing consider the Fund's investment objectives, risks, charges and
expenses. Contact your advisor or Pioneer Investments for a prospectus
containing this information. Read it carefully.
The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q by visiting the Commission's
web site at http://www.sec.gov. The filed form may also be viewed and copied at
the Commission's Public Reference Room in Washington, DC. Information regarding
the operations of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so.
The registrant has adopted, as of the end of the period covered by this report,
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer and controller.
(b) For purposes of this Item, the term "code of ethics" means written standards
that are reasonably designed to deter wrongdoing and to promote:
(1) Honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
(2) Full, fair, accurate, timely, and understandable disclosure in
reports and documents that a registrant files with, or submits to, the
Commission and in other public communications made by the registrant;
(3) Compliance with applicable governmental laws, rules, and
regulations;
(4) The prompt internal reporting of violations of the code to an
appropriate person or persons identified in the code; and
(5) Accountability for adherence to the code.
(c) The registrant must briefly describe the nature of any amendment, during the
period covered by the report, to a provision of its code of ethics that applies
to the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, and that relates to any element of the code of
ethics definition enumerated in paragraph (b) of this Item. The registrant must
file a copy of any such amendment as an exhibit pursuant to Item 10(a), unless
the registrant has elected to satisfy paragraph (f) of this Item by posting its
code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by
undertaking to provide its code of ethics to any person without charge, upon
request, pursuant to paragraph (f)(3) of this Item.
The registrant has made no amendments to the code of ethics during the period
covered by this report.
(d) If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of ethics to
the registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party, that relates to one or more of the items set forth
in paragraph (b) of this Item, the registrant must briefly describe the nature
of the waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
Not applicable.
(e) If the registrant intends to satisfy the disclosure requirement under
paragraph (c) or (d) of this Item regarding an amendment to, or a waiver from,
a provision of its code of ethics that applies to the registrant's principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of this
Item by posting such information on its Internet website, disclose the
registrant's Internet address and such intention.
Not applicable.
(f) The registrant must:
(1) File with the Commission, pursuant to Item 10(a), a copy of its code
of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller,
or persons performing similar functions, as an exhibit to its annual
report on this Form N-CSR;
(2) Post the text of such code of ethics on its Internet website and
disclose, in its most recent report on this Form N-CSR, its Internet
address and the fact that it has posted such code of ethics on its
Internet website; or
(3) Undertake in its most recent report on this Form N-CSR to provide to
any person without charge, upon request, a copy of such code of ethics
and explain the manner in which such request may be made.
See Item 10(2)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of trustees has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its audit
committee; or
(ii) Does not have an audit committee financial expert serving on its audit
committee.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of trustees, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined in
Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
Ms. Marguerite A. Piret, an independent trustee, is such an audit committee
financial expert.
(3) If the registrant provides the disclosure required by paragraph (a)(1)
(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for each
of the last two fiscal years for professional services rendered by the principal
accountant for the audit of the registrant's annual financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years.
Audit Fees
Fees for audit services provided to the Fund, including fees
associated with the filings of its Form N-1A, totaled
approximately $40,730 in 2007 and approximately $39,535 in
2007.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees billed in
each of the last two fiscal years for assurance and related services by the
principal accountant that are reasonably related to the performance of the audit
of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees
There were no audit-related services in 2007 or 2006.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each of
the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
Tax Fees
Fees for tax compliance services, primarily for tax returns,
totaled $7,820 in 2007 and $7,140 in 2006.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed in
each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
Other Fees
There were no other services provided to the Fund during the
fiscal years ended June 30, 2007 and 2006.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
PIONEER FUNDS
APPROVAL OF AUDIT, AUDIT-RELATED, TAX AND OTHER SERVICES
PROVIDED BY THE INDEPENDENT AUDITOR
SECTION I - POLICY PURPOSE AND APPLICABILITY
The Pioneer Funds recognize the importance of maintaining the independence of
their outside auditors. Maintaining independence is a shared responsibility
involving Pioneer Investment Management, Inc ("PIM"), the audit committee and
the independent auditors.
The Funds recognize that a Fund's independent auditors: 1) possess knowledge of
the Funds, 2) are able to incorporate certain services into the scope of the
audit, thereby avoiding redundant work, cost and disruption of Fund personnel
and processes, and 3) have expertise that has value to the Funds. As a result,
there are situations where it is desirable to use the Fund's independent
auditors for services in addition to the annual audit and where the potential
for conflicts of interests are minimal. Consequently, this policy, which is
intended to comply with Rule 210.2-01(C)(7), sets forth guidelines and
procedures to be followed by the Funds when retaining the independent audit firm
to perform audit, audit-related tax and other services under those
circumstances, while also maintaining independence.
Approval of a service in accordance with this policy for a Fund shall also
constitute approval for any other Fund whose pre-approval is required pursuant
to Rule 210.2-01(c)(7)(ii).
In addition to the procedures set forth in this policy, any non-audit services
that may be provided consistently with Rule 210.2-01 may be approved by the
Audit Committee itself and any pre-approval that may be waived in accordance
with Rule 210.2-01(c)(7)(i)(C) is hereby waived.
Selection of a Fund's independent auditors and their compensation shall be
determined by the Audit Committee and shall not be subject to this policy.
SECTION II - POLICY
- ---------------- -------------------------------- -------------------------------------------------
SERVICE SERVICE CATEGORY DESCRIPTION SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
CATEGORY
- ---------------- -------------------------------- -------------------------------------------------
I. AUDIT Services that are directly o Accounting research assistance
SERVICES related to performing the o SEC consultation, registration
independent audit of the Funds statements, and reporting
o Tax accrual related matters
o Implementation of new accounting
standards
o Compliance letters (e.g. rating agency
letters)
o Regulatory reviews and assistance
regarding financial matters
o Semi-annual reviews (if requested)
o Comfort letters for closed end
offerings
- ---------------- -------------------------------- -------------------------------------------------
II. Services which are not o AICPA attest and agreed-upon procedures
AUDIT-RELATED prohibited under Rule o Technology control assessments
SERVICES 210.2-01(C)(4) (the "Rule") o Financial reporting control assessments
and are related extensions of o Enterprise security architecture
the audit services support the assessment
audit, or use the
knowledge/expertise gained
from the audit procedures as a
foundation to complete the
project. In most cases, if
the Audit-Related Services are
not performed by the Audit
firm, the scope of the Audit
Services would likely
increase. The Services are
typically well-defined and
governed by accounting
professional standards (AICPA,
SEC, etc.)
- ---------------- -------------------------------- -------------------------------------------------
------------------------------------- ------------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the audit period for all services and related fees
pre-approved specific service reported at each regularly
subcategories. Approval of the scheduled Audit Committee
independent auditors as meeting.
auditors for a Fund shall
constitute pre approval for
these services.
------------------------------------- ------------------------------------
o "One-time" pre-approval o A summary of all such
for the fund fiscal year within services and related fees
a specified dollar limit (including comparison to
for all pre-approved specified dollar limits)
specific service subcategories reported quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limit for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for Audit-Related
Services not denoted as
"pre-approved", or
to add a specific service
subcategory as "pre-approved"
------------------------------------- ------------------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
III. TAX SERVICES Services which are not o Tax planning and support
prohibited by the Rule, o Tax controversy assistance
if an officer of the Fund o Tax compliance, tax returns, excise
determines that using the tax returns and support
Fund's auditor to provide o Tax opinions
these services creates
significant synergy in
the form of efficiency,
minimized disruption, or
the ability to maintain a
desired level of
confidentiality.
- ----------------------- --------------------------- -----------------------------------------------
- ------------------------------------- -------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- -------------------------
- ------------------------------------- -------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year all such services and
within a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for tax services not
denoted as pre-approved, or to add a specific
service subcategory as
"pre-approved"
- ------------------------------------- -------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- --------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PRE-APPROVED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- --------------------------- -----------------------------------------------
IV. OTHER SERVICES Services which are not o Business Risk Management support
prohibited by the Rule, o Other control and regulatory
A. SYNERGISTIC, if an officer of the Fund compliance projects
UNIQUE QUALIFICATIONS determines that using the
Fund's auditor to provide
these services creates
significant synergy in
the form of efficiency,
minimized disruption,
the ability to maintain a
desired level of
confidentiality, or where
the Fund's auditors
posses unique or superior
qualifications to provide
these services, resulting
in superior value and
results for the Fund.
- ----------------------- --------------------------- -----------------------------------------------
- --------------------------------------- ------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------- --------------------------
o "One-time" pre-approval o A summary of
for the fund fiscal year within all such services and
a specified dollar limit related fees
(including comparison
to specified dollar
limits) reported
quarterly.
o Specific approval is
needed to exceed the
pre-approved dollar limits for
these services (see general
Audit Committee approval policy
below for details on obtaining
specific approvals)
o Specific approval is
needed to use the Fund's
auditors for "Synergistic" or
"Unique Qualifications" Other
Services not denoted as
pre-approved to the left, or to
add a specific service
subcategory as "pre-approved"
- ------------------------------------- --------------------------
SECTION III - POLICY DETAIL, CONTINUED
- ----------------------- ------------------------- -----------------------------------------------
SERVICE CATEGORY SERVICE CATEGORY SPECIFIC PROHIBITED SERVICE SUBCATEGORIES
DESCRIPTION
- ----------------------- ------------------------- -----------------------------------------------
PROHIBITED SERVICES Services which result 1. Bookkeeping or other services
in the auditors losing related to the accounting records or
independence status financial statements of the audit
under the Rule. client*
2. Financial information systems design
and implementation*
3. Appraisal or valuation services,
fairness* opinions, or
contribution-in-kind reports
4. Actuarial services (i.e., setting
actuarial reserves versus actuarial
audit work)*
5. Internal audit outsourcing services*
6. Management functions or human
resources
7. Broker or dealer, investment
advisor, or investment banking services
8. Legal services and expert services
unrelated to the audit
9. Any other service that the Public
Company Accounting Oversight Board
determines, by regulation, is
impermissible
- ----------------------- ------------------------- -----------------------------------------------
- ------------------------------------------- ------------------------------
AUDIT COMMITTEE APPROVAL POLICY AUDIT COMMITTEE
REPORTING POLICY
- ------------------------------------------- ------------------------------
o These services are not to be o A summary of all
performed with the exception of the(*) services and related
services that may be permitted fees reported at each
if they would not be subject to audit regularly scheduled
procedures at the audit client (as Audit Committee meeting
defined in rule 2-01(f)(4)) level will serve as continual
the firm providing the service. confirmation that has
not provided any
restricted services.
- ------------------------------------------- ------------------------------
- --------------------------------------------------------------------------------
GENERAL AUDIT COMMITTEE APPROVAL POLICY:
o For all projects, the officers of the Funds and the Fund's auditors will each
make an assessment to determine that any proposed projects will not impair
independence.
o Potential services will be classified into the four non-restricted service
categories and the "Approval of Audit, Audit-Related, Tax and Other
Services" Policy above will be applied. Any services outside the specific
pre-approved service subcategories set forth above must be specifically
approved by the Audit Committee.
o At least quarterly, the Audit Committee shall review a report summarizing the
services by service category, including fees, provided by the Audit firm as
set forth in the above policy.
- --------------------------------------------------------------------------------
(2) Disclose the percentage of services described in each of paragraphs (b)
through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
Non-Audit Services
Beginning with non-audit service contracts entered into on or
after May 6, 2003, the effective date of the new SEC pre-
approval rules, the Fund's audit committee is required to pre-
approve services to affiliates defined by SEC rules to the
extent that the services are determined to have a direct impact
on the operations or financial reporting of the Fund. For the
years ended June 30, 2007 and 2006, there were no services
provided to an affiliate that required the Fund's audit
committee pre-approval.
(f) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent employees.
N/A
(g) Disclose the aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the registrant's
investment adviser (not including any sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by another investment
adviser), and any entity controlling, controlled by, or under common control
with the adviser that provides ongoing services to the registrant for each of
the last two fiscal years of the registrant.
The aggregate non-audit fees for the Fund and affiliates, as
previously defined, totaled approximately $7,820 in 2007 and
$7,140 in 2006.
(h) Disclose whether the registrant's audit committee of the board of trustees
has considered whether the provision of non-audit services that were rendered to
the registrant's investment adviser (not including any subadviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of
Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant's independence.
The Fund's audit committee of the Board of Trustees has
considered whether the provision of non-audit services that
were rendered to the Affiliates (as defined) that were not pre-
approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Item 5. Audit Committee of Listed Registrants
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17 CFR 240.10A-3), state whether
or not the registrant has a separately-designated standing
audit committee established in accordance with Section
3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)).
If the registrant has such a committee, however designated,
identify each committee member. If the entire board of directors
is acting as the registrants audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)),
so state.
N/A
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption
from the listing standards for audit committees.
N/A
Item 6. Schedule of Investments.
File Schedule I Investments in securities of unaffiliated issuers
as of the close of the reporting period as set forth in 210.12-
12 of Regulation S-X [17 CFR 210.12-12], unless the schedule is
included as part of the report to shareholders filed under Item
1 of this Form.
Included in Item 1
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on
this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment
Companies.
(a) If the registrant is a closed-end management investment company that
is filing an annual report on this Form N-CSR,provide the following
information:
(1) State the name, title, and length of service of the person or persons
employed by or associated with the registrant or an investment adviser
of the registrant who are primarily responsible for the day-to-day management
of the registrants portfolio (Portfolio Manager). Also state each Portfolio
Managers business experience during the past 5 years.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and Affiliated Purchasers.
(a) If the registrant is a closed-end management investment company,
in the following tabular format, provide the information specified in
paragraph (b) of this Item with respect to any purchase made by or on
behalf of the registrant or any affiliated purchaser, as defined in
Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of
shares or other units of any class of the registrants equity securities
that is registered by the registrant pursuant to Section 12 of the
Exchange Act (15 U.S.C. 781). Instruction to paragraph (a). Disclose
all purchases covered by this Item, including purchases that do not
satisfy the conditions of the safe harbor of Rule 10b-18 under the
Exchange Act (17 CFR 240.10b-18), made in the period covered by the
report. Provide disclosures covering repurchases made on a monthly basis.
For example, if the reporting period began on January 16 and ended on
July 15, the chart would show repurchases for the months from January 16
through February 15, February 16 through March 15, March 16 through
April 15, April 16 through May 15, May 16 through June 15, and June 16
through July 15.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
Describe any material changes to the procedures by which shareholders
may recommend nominees to the registrants board of directors, where
those changes were implemented after the registrant last provided
disclosure in response to the requirements of Item 7(d)(2)(ii)(G)
of Schedule 14A (17 CFR 240.14a-101), or this Item.
There have been no material changes to the procedures by which the
shareholders may recommend nominees to the registrants board of
directors since the registrant last provided disclosure in response
to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14(A) in
its definitive proxy statement, or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive officer or
officers and principal financial officer or officers, or persons performing
similar functions, about the effectiveness of the registrant's disclosure
controls and procedures (as defined in Rule 30a-2(c) under the Act (17 CFR
270.30a-2(c))) based on their evaluation of these controls and procedures as of
a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph.
The registrant's principal executive officer
and principal financial officer have
concluded that the registrant's disclosure
controls and procedures are effective based
on their evaluation of these controls and
procedures as of a date within 90 days of the
filing date of this report.
(b) Disclose whether or not there were significant changes in the registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
There were no significant changes in the
registrant's internal control over financial
reporting that occurred during the second
fiscal quarter of the period covered by this
report that have materially affected, or are
reasonably likely to materially affect, the
registrant's internal control over financial
reporting.
The registrant's principal executive officer and principal financial
officer, however, voluntarily are reporting the following information:
In August of 2006 the registrant's investment adviser
enhanced its internal procedures for reporting performance
information required to be included in prospectuses.
Those enhancements involved additional internal controls
over the appropriateness of performance data
generated for this purpose. Such enhancements were made
following an internal review which identified
prospectuses relating to certain classes of shares of
a limited number of registrants where, inadvertently,
performance information not reflecting the deduction of
applicable sales charges was included. Those prospectuses
were revised, and the revised prospectuses were distributed to
shareholders.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act
(17 CFR 270.30a-2).
Filed herewith.
SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Pioneer Bond Fund
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr, President
Date August 29, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ John F. Cogan, Jr.
John F. Cogan, Jr., President
Date August 29, 2007
By (Signature and Title)* /s/ Vincent Nave
Vincent Nave, Treasurer
Date August 29, 2007
* Print the name and title of each signing officer under his or her signature.